When is the German IFO Survey and how it could affect EUR/USD?
The Germany IFO Survey Overview
Germany’s IFO institute will publish its business survey for August on Monday at 0800 GMT. The headline IFO Business Climate Index is expected to stay unchanged at 88.6 this month.
Meanwhile, the Current Assessment sub-index is set to tick a tad higher to 86.7 in August from July’s 86.5.
The IFO Expectations Index, which firms’ projections for the next six months, is likely to decline to 90.2 in the reported month, as against a 90.7 figure printed in July.
How could the German IFO Survey affect EUR/USD?
EUR/USD is consolidating its pullback from three-week highs of 1.1743 in the lead up to the German IFO Survey. The pair pares previous gains as the US Dollar finds its feet, following Friday’s steep sell-off induced by US Federal Reserve (Fed) Chairman Jerome Powell’s dovish pivot during his appearance at the Jackson Hole Symposium.
An unexpected pick up in the German business morale could lift the Euro (EUR), reviving the EUR/USD uptrend, with the immediate resistance seen at three-week highs of 1.1743. The July 24 high of 1.1789 will be the next upside barrier en route to the 1.1800 level. To the downside, the 50-day Simple Moving Average (SMA) at 1.1651 will offer some comfort to buyers, below which the 1.1600 psychological level could be tested. Further down, the August 22 low of 1.1583 will be on the sellers’ radars.
