Businesses are confident in Europe’s largest economy. The influential IFO Business Climate beats expectations with a score of 114.6. This is accompanied with better than expected numbers in the sub-components. The Business Expectations figure hits 106.5 points and the Current Assessment reaches 123.2.
EUR/USD rises towards the highs. Will it make it all the way to 1.13?
The euro-zone manufacturing PMI hit 57 against 56.5 expected while the services PMI missed with 56.2 instead of 56.4.
All in all, growth is expected to continue in the old continent. Any score above 50 in the PMIs reflects growth and this growth is accelerating.
Business surveys background
Germany’s No. 1 think-tank was expected to show a more robust consumer confidence figure in May: 113.1 against 112.9 in April. Also, the accompanying components were expected to tick up.
EUR/USD was reaching out to new highs ahead of the publication, hitting a new 6-month high of 1.1267.
Earlier, Germany’s purchasing managers’ index for the manufacturing sector came out above expectations at 59.4, better than 58 predicted. The services sector stood at 55.2, just shy of 55.5 predicted.
French PMIs were mixed: the manufacturing PMI missed with 54 against 55.2 projected. The services PMI beat with 58, above 56.8 that was on the cards.
More: EUR/USD moving on up on its mojo and on Merkel
The news of the day is the tragic terror attack in Manchester. At least 22 people have lost their lives while exiting a concert in the Manchester Arena in an apparent suicide bombing. Unfortunately, markets have gotten used to such tragedies and the reaction is minimal.
Here is the 30-minute chart:
