When is German IFO and how this could affect EUR/USD?

German IFO Business Climate Overview

The German Ifo surveys for April are lined up for release later today at 8GMT. The headline Ifo Business Climate Index is expected to tick higher to 112.5 in April versus 112.3 seen last month. The Current Assessment sub-index is seen a tad weaker at 119.2 this month, while the Ifo Expectations Index – indicating firms’ projections for the next six months – is expected to edge slight higher to 106 in April, as compared to March’s 105.7 reading.

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?

The German IFO Surveys are expected to show mixed results across all indicators, which could keep the EUR/USD pair capped below 1.09 handle, while a better-than expected headline data could send the rate above 1.0900 levels, in a bid to retest 2017 highs of 1.0920.

Key notes

German IFO amongst market movers today – Danske Bank

Analysts at Danske Bank suggests that the German IFO expectations data will be amongst market movers for today’s session.

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).