Trade Desk Thoughts - German Ifo Business Climate Index

German Ifo Business Climate Index Actual 94.8, Expected 97.1, Previous 97.5;
Ifo Business Expectations Index Actual 87.0, Expected 90.5, Previous 89.9 (revised from 90.0)

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.

Trade Desk Thoughts: The Information and Forschung (Ifo) Index measuring the mood of firms in manufacturing, construction, wholesale and retail shows the German economy is struggling in face of the global slowdown. The Business Climate Index came in at worse than expected, showing a big deterioration from the last month. The Business Expectations Index was released lower than what analyst's estimations.

Forex Technical Reaction: The euro fell 80 pips at the time of the release. The pair is gaining ground since the Asian session had started.

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