The German IFO Business Climate Index Effect

Chương 32 The German IFO Business Climate Index Effect

Germany: The German IFO Business Climate Index is Expected to Come at 87.2 More than the Previous Result at 86.3

Summary:

The EU economy might show some recovery versus major currencies after releasing the German IFO Business Climate Index data on 19-12-2022 at 1:00 PM (GMT +4) with an expected result of 87.2 more than the previous result. EURUSD might go up to touch 1.07.

1. Fundamentals

The Germans will release the IFO Business Climate Index report for December on December 19, 2022. The IFO Business Climate Index is one of the major monthly indicators that affect the market widely, it measures the expectations for the German business climate for the next 6 months, it is a composite index based on a survey of manufacturers, builders, wholesalers, and retailers. A higher-than-expected data is bullish for the EUR, and lower-than-expected data is bearish for the EUR. The data is expected to come out at 87.2 more than the previous result by 0.9. Bulls will interfere and the EUR might show some recovery to touch the 1.07 level.

EURUSD already showed some recovery last week after the release of the U.S. CPI data, and it is expected to increase further in the upcoming days affected by world inflation, the interest rate in Europe, U.S – China tensions, and the overall world political situation.

Major traders are holding their positions on EURUSD for further increases in prices.

2. Technical Analysis

EURUSD Daily Chart

The German IFO Business Climate Index Effect-1