Source: ForexYard
The German Ifo (Information and Forschung) Business Climate report was published earlier this morning, surprising many investors with a very mild uptick beyond expectations. Most analysts had expected the report to show a stronger downtick than even the forecast 106.3. The actual reading of 106.4 gave little support to Germany, but has held many traders steady.
Explaining such random optimism is difficult from the short-term view this blog tends to take. Given the large sample size of 7,000 survey respondents, the Ifo report could have caught some of the optimism from earlier in the month and only recently hit the snag of the Greece bailout concern. It could also be that recent reports on confidence are expected to rise following the impending dismal third quarter. Either way, the report has helped many investors turn to higher yielding currencies, and the EUR seems to be on the rise as a result.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.
