When are the German IFO surveys and how they could affect EUR/USD?

German IFO Business Climate Overview

The German Ifo surveys for November are lined up for release later today at 9GMT. The headline Ifo Business Climate Index is expected to edge lower to 116.6 in Nov. The Current Assessment sub-index is seen slightly higher at 125.0 this month, while the Ifo Expectations Index – indicating firms’ projections for the next six months – is likely to come in a tad weaker at 108.9 in the reported month.

Deviation impact on EUR/USD

Readers can find FX Street's proprietary deviation impact map of the event below. As observed the reaction is likely to remain confined between 3 and 40 pips in deviations up to 2.4 to -3.2, although in some cases, if notable enough, a deviation can fuel movements of up to 60 pips.

 How could affect EUR/USD?

Haresh Menghani, Analysts at FXStreet noted: “From a technical perspective, a move beyond monthly tops hurdle near the 1.1860 level reaffirm resumption of the prior bullish trend and accelerate the up-move towards the 1.1900 round figure mark. A follow-through buying interest has the potential to continue lifting the pair towards 1.1945-50 intermediate hurdle en-route the key 1.20 psychological mark.

On the flip side, any meaningful retracement is likely to find some fresh buying interest near the 1.1800 handle and any subsequent weakness is likely to be limited near the 1.1765-60 strong support”, Haresh added.

Key notes

EUR/USD soggy around 1.1850, German IFO eyed

“The single currency is alternating gains with losses at the end of the week, with EUR/USD hovering over the mid-1.1800s for the time being. Ahead in the session, the German IFO indicator is due along with figures from the Italian industrial sector and Spanish producer prices.”

About German IFO Business Climate

This German business sentiment index released by the CESifo Group is closely watched as an early indicator of current conditions and business expectations in Germany. The Institute surveys more than 7,000 enterprises on their assessment of the business situation and their short-term planning. The positive economic growth anticipates bullish movements for the EUR, while a low reading is seen as negative (or bearish).