German Business Climate Data

• German Business Expectations Index (Aug), fact 91.3, forecast 91.5.
• German Current Assessment (Aug), fact 97.3, forecast 98.6.
• German IFO Business Climate Index (Aug), fact 94.3, forecast 95.1

Business sentiment in Germany continued to deteriorate for the fifth consecutive month, dropping to the level of November 2012. This strengthened the pessimistic sentiment in the eurozone and put pressure on the euro.

Fig. 1. German IFO Business Climate Index Chart

Weak data on Germany, restrained negative sentiment and the correction of the US currency after the decline increased the pressure on the euro. As a result, the EUR/USD pair moved to correction on the rebound from resistance levels: 1.1160-50. Significant support is located at marks: 1.1100 and 1.1080. The weakening of this pair also depends largely on the pace of the American dollar recovery and pessimistic market sentiment.

Fig. 2. EUR/USD chart. Current price – 1.1120

Read also: “What does British pound wait for with a new prime minister“

Hanzenko Anton

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