It’s a relatively busy day for the EUR/USD, with German business sentiment in focus ahead of the ECB monetary policy meeting minutes and chatter.
It is a relatively busy day for the EUR/USD on the economic calendar. On the data front, the German Ifo Business Climate Index will draw interest early in the European session.
On Wednesday, Markit’s S&P Global Flash German Composite PMI survey ‘highlighted widespread concerns about the effects of high inflation, rising interest rates, and heightened levels of uncertainty on investments and economic conditions.’
Despite the negative sentiment, the level of pessimism continued to improve since the September low. Better-than-expected Ifo numbers would deliver EUR/USD support when considering the Markit survey results. Economists forecast the Index to rise from 84.3 to 85.0.
While today’s stats will draw interest, the ECB’s monetary policy meeting minutes will likely garner greater interest. Investors will be looking for clues on what to expect next month. Signals from ECB members have been mixed, creating monetary policy uncertainty.
ECB member commentary will also need consideration. ECB members Luis de Guindos, Isabel Schnabel, and Andrea Enria will speak today.
The influence of the ECB minutes and ECB member chatter on the EUR/USD will likely be more than usual following the FOMC meeting minutes from overnight.
EUR/USD Price Action
At the time of writing, the EUR was down 0.01% to $1.03937. A mixed start to the day saw the EUR/USD fall to an early low of $1.03924 before steadying.