German IFO preview: What to expect of EUR/USD?

By FXStreet FXStreet (Mumbai) – EUR/USD steadies near multi-month troughs, although manages to hold above 1.06 handle on the back of a minor correction seen in the US dollar across the board. The recent streak of dovish comments from the ECB officials and the commodity sell-off continue to dampen the sentiment around the euro. In recent dealings, EUR/USD recovered losses after the German final GDP figures revealed that the economy grew at a moderate pace in Q3.

While markets now await the German Ifo business surveys due to be reported at 0900 GMT for further momentum on the pair.

Volkswagen Scandal and Paris terror attacks to weigh

The headline Ifo Business Climate Index is expected to remain unchanged from the 108.2 booked last month. The Current Assessment sub-index is seen lower at 112.3 from the 112.6 booked a month ago. The Ifo Expectations Index – indicating firms’ projections for the next six months – is also expected to tick lower to 103.5 versus 103.8 registered in October.

Although the headline numbers are expected to remain at same historical high levels, there remains risk of a downside surprise as the uncertainty created by VW emission-scandal and the recent Paris terror attacks may negatively affect …read more

Source:: FX Street