When are the German IFO Surveys and how might they affect the EURUSD pair? Find the answer in the following 27 August EURUSD Impact Analysis.
27 August, GKFX –The German IFO surveys for August are lined up for release later today at 0800 GMT. The headline IFO Business Climate Index is expected to advance to 101.9 in August.
The Current Assessment sub-index is also seen higher at 105.4 this month, while the IFO Expectations Index – indicating firms’ projections for the next six months – is likely to rise to 98.5 in the reported month.
Deviation impact on EURUSD
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.
German IFO Surveys: 27 August EURUSD Impact Analysis
The spot could stall its retreat and bounce-back towards the 1.1650 level on a better-than expected improvement in the IFO surveys while the EURUSD pair could accelerate declines to test the 1.1580 support zone on disappointing readings.
According to Karen Jones, Analyst at Commerzbank,
“EURUSD spent much of last week consolidating just below the 55 day ma, currently at 1.1615, but has now risen above it. The cross will need to drop sub 1.1508 to alleviate immediate upside pressure. The rise above the five month resistance line and the 55 day ma at 1.1575/1.1615 is short-term bullish and eyes the 1.1700 area.
Only a drop and daily chart close below the 1.1300/1.1296 November 2016 and mid-June 2017 highs would make us assume the resumption of the down move. In this case the 61.8% Fibonacci retracement of the 2017-18 rise at 1.1187 would be targeted. A drop below the 1.1508 June low would retarget the current August low at 1.1301.”
About the 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).
This article German IFO Surveys: 27 August EURUSD Impact Analysis was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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