EUR Gains Little New Impetus From Strong German Ifo Release
- Ifo indicators underline a strong German economy.
- EUR giving back some of the French election relief rally.
Sentiment among German managers continues to broadly improve, according to a closely watched business survey. The Ifo Business Climate rose to 112.9 in April from 112.3 in March and beat expectations of 112.4. The Current Conditions index jumped to 121.1 from a prior, revised, reading of 119.5 and beat expectations of 119.2.
The Expectations index disappointed however, coming in at 105.2, against expectations of 105.9 and a prior month’s 105.7.
The Ifo survey measures the business situation and expectations of around 7,000 firms in manufacturing, retail, construction and wholesale. The firms are asked to give their assessments of the current business situation and their expectations for the next six months.
The single currency gained on the release but later faded back as traders reassess the weekend’s French election outcome. The first round saw Emmanuel Macron and Marine Le Pen move into the second, and final, round, with the former expected to win the French Presidency with ease. The EUR jumped a coupled of figures overnight but has been giving back gains ever since.
Chart: EURGBP 3-Minute Timeframe (April 24, 2017)
--- Written by Nick Cawley, Analyst
To contact Nick, email him at firstname.lastname@example.org
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