Business confidence is falling, and this happened before the election results. The IFO business climate dropped to 115.2, below expectations. Business Expectations slipped to 107.4 and the Current Assessment number is at 123.6. All the figures fall short of expectations but are not that far from the cycle highs.
EUR/USD is ticking a bit lower, sliding below the round 1.19 level.
Here are the recent moves on the chart:
Germany’s No. Think-tank held its closely-watched business surveys before the elections. The headline business climate score was expected to rise from 115.9 to 116 in September. Business expectations were projected to remain unchanged at 107.9. The Current Assessment carried expectations for a small rise from 124.6 to 124.8.
EUR/USD was trading lower, around 1.1907. The elections resulted in a fractured parliament. Merkel’s party came out first and will leave the government, but received fewer votes than expected. The extreme-right AfD came out third.
Support awaits at 1.1870, followed by 1.1840. Resistance is at 1.20. The pair gapped lower and was unable to close the gap, a sign of weakness.
