German IFO Business Climate Beats With 110.5 – EUR/USD Ticks Up

German businesses are more optimistic about the economy. Germany’s  No. 1 Think-tank surprised with a strong-than-expected read of 110.5. The other components shined as well: Business Expectations rose to 106.1 and the Current Assessment ticked up to 115.

EUR/USD reacted positively, similar to its reaction to yesterday’s upbeat PMIs: it moved up within the narrow 1.0860 to 1.09 range.

Germany’s IFO Business Climate measure was expected to remain unchanged at 109.5 points. Also, the other components did not carry big expectations: the Business Expectations figure was projected to remain unchanged at 104.5 and the Current Assessment number to edge up from 114.7 to 114.9.

EUR/USD had a very steady start to the week, trading under the 1.09 level and not going anywhere fast. It did fall quite substantially last week due to Draghi’s dovish words and also the strengthening US dollar.

Draghi speaks, later on, today, at 15:30 GMT. Support awaits at 1.0860, followed by 1.0820 and 1.0710. Resistance is at 1.0960 and 1.10.

eurusd-technical-chart-october-25-2016

 

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