When are German IFO surveys and how they could affect EUR/USD?

German IFO Business Climate Overview

The German Ifo surveys for September are lined up for release later today at 8GMT. The headline Ifo Business Climate Index is expected to remain steady at 115.2 in Oct. The Current Assessment sub-index is seen slightly lower at 123.5 this month, while the Ifo Expectations Index – indicating firms’ projections for the next six months – is likely to come in a tad weaker at 107.3 this month.

Deviation impact on EUR/USD

Readers can find FX Street's proprietary deviation impact map of the event below. As observed the reaction is likely to remain confined between 3 and 40 pips in deviations up to 2.4 to -3.2, although in some cases, if notable enough, a deviation can fuel movements of up to 60 pips.

 How could affect EUR/USD?

Haresh Menghani, Analysts at FXStreet noted: “Immediate resistance remains near the 1.1800 handle, above which a bout of short-covering could lift the pair towards a descending trend-line resistance near the 1.1830 region ahead of 50-day SMA supply zone near the 1.1845-50 zone.” 

“Alternatively, a sustained weakness below 1.1725 area might turn the pair vulnerable to break below the 1.1700 handle and head towards testing an important horizontal support near the 1.1670-60 region, also coinciding with 100-day SMA,” Haresh added.

Key notes

German IFO and UK GDP amongst market movers today – Danske Bank

EUR/USD catches fresh bid, re-attempts 1.1770 ahead of Ifo

About German IFO Business Climate

This German business sentiment index released by the CESifo Group is closely watched as an early indicator of current conditions and business expectations in Germany. The Institute surveys more than 7,000 enterprises on their assessment of the business situation and their short-term planning. The positive economic growth anticipates bullish movements for the EUR, while a low reading is seen as negative (or bearish).