Euro Drops After German IFO Data Falls Short of Expectations
- German IFO Business Confidence Survey at 107.7
- Chances of lower interest rates increase
- EUR/USDdrops towards 1.3500
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The Euro depreciated vs. the US Dollar after Germany’s IFO business confidence survey fell short of market expectations in September. The headline Business Climate index increased to 107.7 compared to 107.6 recorded in August. Economists were expecting a print at 108.0 ahead of the release.
Germany is the largest economy in the Euro area and with no signs of steady improving performance it might suggests a greater chanceof a rate cut by the ECB and a bearish EURUSD sentiment.
Before the announcement, the EURUSD was trading around 1.3520 but then dropped 20 pips.
EURUSD 5 Min: Sept 24, 2013
Chart created by Cecilia Sanchez Corona using Marketscope 2.0
-- Written by Cecilia Sanchez Corona, DailyFX Research. Feedback can be sent to email@example.com
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