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

German IFO Business Climate Overview

The German Ifo surveys for May are lined up for release later today at 8GMT. The headline Ifo Business Climate Index is expected to tick higher to 113.1 in May versus 112.9 seen last month. The Current Assessment sub-index is seen a tad firmer at 121.2 this month, while the Ifo Expectations Index – indicating firms’ projections for the next six months – is expected to edge slight higher to 105.4 in May, as compared to April’s 105.2 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 upbeat results across all indicators, which could drive the EUR/USD pair back towards fresh 2017 tops reached yesterday at 1.1263, while downbeat headline numbers could send the rate back below 1.1200 levels, in a bid to test the next support located at 1.1160 (May 22 low).

Key notes

German IFO business confidence data in the limelight – Danske Bank

Eurozone PMIs and German IFO in focus - TDS

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).