The Ifo’s business climate data for January came in below expectations. The index fell from 96.3 in December to 95.9 in January.
Economists forecast an optimistic view that the index would rise to 97.0 for the month. Despite the declines, the Ifo institute said that the manufacturing sector was showing signs of a revival.
EUR/USD Remains Muted
The currency pair is weaker, slightly extending the declines lower. But overall, price action remains flat. This comes amid not much of news to go by.
We still maintain that the EURUSD will be testing the 1.1000 level of support. A rebound off this level could see the euro attempting to retrace some of the declines.