EUR/USD muted post-IFO

FXStreet (Edinburgh) - The European currency kept the composure following the release of the German IFO, with EUR/USD still gyrating around 1.1030/40.

EUR/USD indifferent to IFO

The pair paid little attention to the German IFO indicator despite it has mostly surprised to the upside for the current month: Expectations came in at 103.8 (vs. 102.4 exp.), Current Assessment at 112.6 (vs. 113.5 exp.) and Business Climate at 108.2 (vs. 107.8 exp.).

The demand for EUR remains subdued in spite of today’s recovery, as market participants continue to factor in the likeliness of further ECB easing (to be most likely announced in December) and the possibility of a hawkish message by the FOMC at its meeting on Wednesday.

EUR/USD levels to watch

As of writing the pair is up 0.10% at 1.1029 facing the next resistance at 1.1074 (8-month uptrend) followed by 1.1117 (200-day sma) and then 1.1153 (61.8% Fibo of 1.0808-1.1713). On the flip side, a breakdown of 1.1000 (psychological level) would target 1.0915 (low Jul.7) and finally 1.0847 (low Aug.5).

Germany IFO - Expectations registered at 103.8 above expectations (102.4) in October

Germany IFO - Expectations registered at 103.8 above expectations (102.4) in October
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