German Ifo Business Climate Improves In May, But Less Than Expected

Release Explanation: The Information und Forschung (Information and Research) report is based on a monthly survey from firms in manufacturing, construction, wholesaling and retailing. 'The firms are asked to give their assessments of the current business situation and their expectations for the next six months,' TheLFB-Forex.com Trade Team said.

TheLFB-Forex.com Trade Desk Thoughts: The German IFO Business Climate continued to improve in May, but less than what the market expected. The index rose for a second consecutive month in May, reaching 84.2.

'The IFO Business Climate release is inline with the other important reports coming from the region, which show that the pace of contraction has slowed over the last few months. Estimates are that the German economy will contract approximately 3% this year, the worst economic performance since World War II,' TheLFB-Forex.com Trade Team said.

Forex Technical Reaction: The euro declined 25 pips immediately after the release. Since the new trading day began, the euro has fallen 55 pips, breaking below the neutral pivot point (1.3980)

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