Forecast: How will German Ifo Business Climate affect EUR/USD?

ForexNewsNow | Published on September 23, 2010 at 12:02 pm

forex forecast - German economic morale data dueNEW YORK (Forex News Now) – The Munich-based Ifo think tank is due on Friday to publish a key report on German business morale in September, in one of the day’s major realtime forex news events.

Ifo is expected to say that its closely watched German Business Climate index slid to 106.3 during the month, down from 106.7 in July, according to two currency market trading news outlets.

The think tank is scheduled to publish the data at 8:00 A.M. GMT; as such, the report is likely to dominate European morning online FX trading.

However, key U.S. data on durable goods orders and new home sales, due later in the day, are also likely to impact online FX trading.

According to indicator analysis, if the index falls less than forecast, or even rises, the report could lift EUR/USD toward resistance around the high of April 20, 1.3523.

But should the data show a greater-than-expected decline, the currency pair could be could be pushed toward support around Wednesday’s low, 1.3248.

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