German IFO offers the EUR no favours
All measures on the German IFO survey have fallen short of expectations in this morning's release, with the headline business climate index come in at 99.2, down from 99.6 to go against the modest rise forecast at 99.9. Current conditions show an index of 103.3 vs 103.6 expected, while expectations are also softer at a reading of 95.8 vs 96 expected.
In light of the weakness seen in EUR/USD this week, it is no surprise to see the spot rate testing back under 1.1200 as a result, though we also see EUR/CHF pushing back towards 1.1400 again, down from circa 1.1450 levels ahead of the release.
Another true test of EUR weakness will come from EUR/GBP which is refusing to give way on the downside and this is down to the bearish take on GBP, which as a result as weighing down on Cable.
EUR/USD watchers will be keeping a keen eye on 1.1175-80 and a break below here could target 1.1150 and 1.1110-15 levels respectively should sellers get the upper hand again.
As we saw yesterday, strong flows came through once North American markets were under way, so the price action may start to hot up again from around midday. So far, it has been a relatively modest response to what is top tier data for the EUR and one which can prove influential, if not immediately so.