The all-important German IFO Business Climate indicator rose from 101.4 to 102.4 points, exceeding expectations of a modest rise to 101.9 points.
EUR USD Rising on IFO – Click image to enlarge
Apart from the main figure, IFO released two more numbers worth looking at: the Expectations indicator rose from 95.2 to 97.9 points, exceeding expectations for a rise to 96.3 points. The Current Assessment Indicator actually dropped from 108.1 to 1.07.1 points.
EUR/USD, which already began sliding lower from the new highs, is now on the rise again, trading at 1.3245 at the time of writing.
The pair broke the stalemate and began a Santa Rally in the US session. It then continued higher in Asia and reached 1.3256 at the peak, before sliding lower. This positive figure sends it higher.
Update: We are already at 1.3270, another 7 month high.
The next level of resistance is at 1.3290, followed by 1.34, after 1.3170 was broken. EUR/USD is now trading in levels last seen in May. For more, see the EUR/USD forecast.
