EUR/USD drops towards 1.2150 as German IFO Business Climate Index misses estimates with 90.1 in Jan


RBA cuts Official Cash Rate by 25 bps to 0.25%, AUD/USD bounces

  • German IFO Business Climate Index came in at 90.1 in January.
  • IFO Current Economic Assessment stood at 89.2 this month.
  • January German IFO Expectations Index arrived at 91.1.

The headline German IFO Business Climate Index drops sharply to 90.1 in January versus last month’s 92.2, missing the consensus estimates of 91.8 by a big margin.

Meanwhile, the Current Economic Assessment arrived at 89.2 points in the reported month as compared to last month’s 91.3 and 90.6 anticipated.

 

On the other hand, the IFO Expectations Index – indicating firms’ projections for the next six months, eased to 91.1 in January from the previous month’s 93.0 reading and worse than the market expectations of 93.2.

Market reaction

EUR/USD met fresh supply on downbeat German IFO data, heading for a test of Friday’s low at 1.2151.

The spot was last seen trading at 1.2160, down 0.06% on the day.

About German IFO

The headline IFO business climate index was rebased and recalibrated in April after the IFO research Institute changed series from the base year of 2000 to the base year of 2005 as of May 2011 and then changed series to include services as of April 2018. The survey now includes 9,000 monthly survey responses from firms in the manufacturing, service sector, trade and construction.


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