EUR/USD Gains as German Economic Outlook Improves; Ifo
- Business outlook in Germany hits a near six-year high.
- EUR retains its overnight gains
The latest batch of economic sentiment data out of Germany show Europe’s largest economy in good shape.
The March German Business Climate came in at 112.3 against expectations of 111.1 and a prior reading of 111.1, while Expectations jumped to105.7 against expectations of 104.3 and a prior, upwardly revised, 104.2. Current conditions also beat expectations, 119.3 against 118.3.
According to Ifo chief Clemens Fuest, the upswing in the German economy is gaining impetus while the outlook in both the current business situation and business outlook also improved.
“In the manufacturing sector, the index also rose to its highest level since July 2011. This was primarily due to markedly more optimistic expectations on the part of manufacturers. Assessments of the current business situation also improved. This very positive development was partly driven by a renewed upturn in demand. Prices continued to follow an upwards trend. The index rose in nearly all key segments of manufacturing.”
The EUR held onto its overnight gains after the release and currently trades at the best level since December 8, 2016.
Chart EURUSD Three-Hour Timeframe (March 9 – March 27, 2017).
--- Written by Nick Cawley, Analyst
To contact Nick, email him at Nicholas.email@example.com
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