Business confidence ticks up in Germany, in spite of the latest spike in new COVID-19 cases. The uptick delivered support to the EUR early in the European session.
After a quiet start to the day on the economic calendar, German business sentiment was in focus early in the European session.

Business Sentiment Picks Up…
In March, Germany’s IFO Business Climate Index increased from a revised 92.7 to 96.6.
Supporting the uptick in the headline figures was a jump in the business expectations sub-index from a revised 94.2 to 100.4.

The current assessment sub-index was also on the rise, increasing from 90.6 to 90.3.

According to the March IFO Survey,

Manufacturing company optimism reached levels not seen since November 2010.
Service sector optimism returned for the first time since the fall, supporting a pickup in the sector’s Business Climate Index.
In trade, the Business Climate Index surged in March, with both the current situation and business expectations seeing sharp increases.
Economists had forecast the IFO Business Climate Index to rise to 93.2. Both the expectations and sentiment sub-indexes also came in ahead of forecasts of 95.0 and 91.3 respectively.

The pickup in sentiment was aligned with the marked pickup in Germany’s private sector activity through the 1st quarter.
Market Impact
Ahead of the key stats of the day, the EUR had risen to a pre-release high $1.17889.

In response to the IFO numbers, the EUR rose from $1.17872 to a post-stat and current day high $1.17904 before falling to a post-stat low $1.17831.

At the time of writing, the EUR was up by 0.22% to $1.17892.
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