News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
EUR/USD Plunges to 3-Month Low on Dismal German IFO Data

EUR/USD Plunges to 3-Month Low on Dismal German IFO Data

David Maycotte,

Talking Points

The Euro sank to a 3-month low on the back of disappointing German IFO figures that may further boost speculation for ECB stimulus.

The German IFO gauge of business confidence disappointed across the board as the headline business climate index fell to 110.4 (110.9 estimates vs 111.2 prior), the lowest level in 5-months. Despite the miss, the print falls broadly in line with near- to medium-term trend averages. The gauge for current business confidence came in at 114.8 (115.4 expected vs 115.3 prior) and future expectations also fell to 106.2 (106.5 expected vs 107.3 prior).

“On balance, these figures offer little in terms of directional guidance for the Euro in as much they would do little further to inform speculation about the likelihood of imminent ECB stimulus expansion,” says DailyFX Strategist Ilya Spivak. At present, he has entered short EUR/USD.

The Euro has been under pressure since the ECB meeting on May 8th. The outlook remains bearish as euro economic data worsens amid rampant ECB speculation.

The Euro sank vs the US Dollar following the data release, to the lowest level since February 27, 2014.

“There is a lot to break through at these levels. The 200 day average, October high and 2/27 low continue to hold up,” says DailyFX Strategist Jamie Saettele, “but two reversal attempts since 5/15 have failed. As such, beware a flush into 1.3560/90.” He is currently looking at a EUR/USD diagonal wedge pattern, that if fully retraced yields a target of 1.3294.

EUR/USD Plunges to 3-Month Low on Dismal German IFO Data

EUR/USD 5-Minute Chart using FXCM Marketscope 2.0

-- Written by David Maycotte, DailyFX Research Team. Questions, comments or concerns can be sent to

Want to trade with proprietary strategies developed by FXCM? Find out how with Mirror Trader.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.