THE TAKEAWAY: German IFO survey better than expected -> Greek bailout bolsters market sentiment -> Euro jumps 30 points
The IFO survey out of Munich today came in better than expected. A reading of German business climate rose to 109.6 from 108.3 in January, above the 108.8 predicted by economists. The current assessment and economic expectation gauges also rose above expectations.
This week’s ratification of a bailout to Greece was thought to have provided markets with a positive boost prior to the surveys. Recent narrowing bond yields out of embattled European sovereigns like Italy and Spain were also though to have bolstered sentiment. Equities markets were up today on a fresh bout of risk appetite.
The better than expected data was used as a catalyst to propel the Euro through some critical multi session resistence at 1.3325, which could now open the door for additional gains in the single currency over the coming days.
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