THE TAKEAWAY: German business climate survey rises to 106.2 in July -> German PMI’s also reported higher in July -> Euro temporarily rises
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The Euro temporarily rose against the US Dollar following a better than expected IFO survey of the German business climate.
The survey of German firms regarding the business climate was reported at 106.2 for July, beating expectations and up from 105.9 in June. The expectations survey declined slightly to 102.4, disappointing expectations for the survey result to remain at 102.5 for a second month. The current assessment survey rose to 110.1 from 109.4 in June.
The better than expected IFO survey follows yesterday’s release of German Purchasing Managers’ Index for July. Both PMI’s were reported better than expected and higher than the 50.0 neutral line. The index results bode well for Euro investors looking for improved economic expansion in Q3 in the Euro-zone’s biggest economy.
The Euro is trading around 1.3200 against the US Dollar at the time of this writing. The pair may continue to see resistance around the 1.3250 level, and support may be provided by a broken resistance line around 1.3180.
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EURUSDDaily: July 25, 2013
Chart created by Benjamin Spier using Marketscope 2.0
-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to instructor@dailyfx.com .
