EUR price, news and analysis:
- The business climate in Germany deteriorated unexpectedly in April, according to the Ifo Institute.
- That added to the evidence that the German economy is spluttering and weakened EURUSD.
German economy loses steam
EURUSD fell back Wednesday after the German Ifo Institute reported that its business climate index dropped to 99.2 in April from a revised 99.7 in March. An increase to 99.9 had been predicted by economists.
Moreover, its current assessment index and its expectations measure both missed expectations too, prompting Ifo to say that economic growth in Germany is likely to be weaker than the 0.8% forecast, with the industrial sector dragging the economy lower. “The German economy continues to lose steam,” Ifo President Clemens Fuest said in a statement.
In response, EURUSD weakened for the second successive session, extending the decline recorded over the past week.
EURUSD Price Chart, 30-Minute Timeframe (April 17-24, 2019)
Chart by IG (You can click on it for a larger image)
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--- Written by Martin Essex, Analyst and Editor