Be Prepared!
German Ifo Business Climate Expected on Friday, 23 July 2010
At ForexYard we encourage our customers to closely follow major market events. You need to be prepared! As such, you should know that the German Ifo Business Climate is expected Friday, July 23rd, at 8:00 GMT
Market events like the German Ifo Business Climate Report can either:
1. Cause significant changes to current currency trends
2. Drive current trends even furth
Let me show you how the team of FOREXYARD Analysts can help you benefit from this information.
How Can You Take Advantage of this Report?
The German Ifo Business Climate report is a strong indicator of market sentiment as well as current conditions and future expectations in one of the world’s largest economies. As such, this report carries a monumental impact on the value of the EUR as Germany remains Euro-Zone’s largest and most influential economy.
Business climate surveys have very broad implications for analysts. For instance, if Business Climate improves, we can deduce that business conditions have improved and economic activity such as hiring and investment is likely to grow in the near future. Improved economic condition may also imply exports are growing, which means more demand for German goods and thus more demand for the common currency (EUR). If businesses feel more confident about their future economic standing they will be more willing to hire more people which will affect future employment levels as well as consumer demand. These are major factors in economic growth and stability. Confidence in sustainable economic recovery is important as this may allow the Central Bank to raise interest rates; this tends to boost the values of the currency as it becomes more valuable to investors.
Of course, if Business Sentiment is declining we can deduce the opposite market behavior as what’s described above. Having this information is crucial to understanding how to trade EUR-linked pairs before and after its release.
Stay Informed!
In June, the German Ifo Business Climate improved slightly, after a decline the previous month. Expectedly, we’ve seen the value of the EUR appreciate as well. This is encouraging news as it indicates the German economy remains resilient despite the sovereign debt crisis.
This month, however, The Ifo institute in Munich is expected to state that the business climate index fell back to 101.5 in July from 101.8 in June.
Despite this possible decline, the index is still positive and has been growing steadily over the past few months. This indicates the strength of the German economy compared to other Euro-Zone members. This minor fluctuation is unlikely to derail the EUR from its recent rally versus the USD. A better than expected result might even help push the EUR to new highs versus its counterparts.
Keep in Contact!
You can keep yourself updated with the latest Ifo Business Climate news direct from the FOREXYARD Analyst team by following our blog and joining us on Twitter, Facebook, YouTube, and LinkedIn. We use these channels to frequently post news updates and market analysis reports.
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