THE TAKEAWAY: The German IFO business climate survey rises to 105.9 in June -> Bundesbank predicts a summer slowdown -> Euro does not react to survey
The German IFO business climate survey reached a 3-month high in June, thereby suggesting a strengthening of the Euro-zone’s biggest economy.
The IFO business climate survey, made up of the current assessment and expectations surveys of German businesses, was reported at 105.9, meeting expectations and slightly higher than the 105.7 survey result in June. The expectations survey climbed more than expected to 102.5, while the current assessment survey declined more than expected to 109.4.
The German economy rose 0.1% in Q1, following the 0.7% decline in Q4. The Bundesbank recently warned that the German economy will slow in the summer, but expects stronger growth in the current quarter, thereby casting a shadow over today’s IFO survey results. The German manufacturing PMI also recently declined more than expected to 48.7 in an initial estimate for June.
Furthermore, the Euro did not significantly react to the better than expected German IFO survey results. EUR/USD is currently trading slightly above the 1.3100 line, and may next see support by the key 1.3000 line. The 1.3200 line may again provide resistance in future trading.
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EURUSDDaily: June 24, 2013
Chart created by Benjamin Spier using Marketscope 2.0
-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to email@example.com .