The highly regarded German Ifo Business Climate jumped to 109.6 points, higher than 108.7 that was expected.
EUR/USD is above 1.33 and now crossed the previous year-to-date high. Strong resistance is close.
Other components of the indicator were also good. The Current Assessment figure rose from 116.3 to 117.5 points. A rise to 116.4 was predicted. The IFO Expectations rose from 100.9 to 102.3, more than 102 that was predicted.
IFO is Germany’s No. 1 think tank. It tends to be more positive and to exceed expectations, contrary to the ZEW indicator.
In a statement released together with the indicator, IFO says that it doesn’t see a recession in Germany for now. Oil prices might hit consumption and the debt crisis is a danger, but he does seem pleased.
EUR/USD got very close to resistance at 1.3333. IT already crossed the previous 2012 high of 1.3322. Higher resistance is at 1.3450, followed by 1.3550. Support is at 1.3280, followed by 1.3212.
The euro enjoys the relative calm regarding headlines from Greece. While there are many doubts about the deal, nothing serious broke down in recent days.
This allowed the euro to stabilize and now to rise. Nevertheless, there are too many moving parts, and the bad headlines could still come.
For more on the euro, see the euro to dollar forecast.
