The German IFO Survey Overview.
Germany's IFO institute is set to release its business survey for December on Wednesday at 9:00 AM GMT.
The headline IFO Business Climate Index is expected to rise slightly to 88.2 this month, up from the 88.1 reading in November.
The Current Assessment Index is expected to slightly rise to 85.7 in December from 85.6, and the Expectations Index is likely to drop a bit to 90.5 from 90.6.
How might the German IFO Survey impact the EUR/USD exchange rate?
The EUR/USD pair might not drop much if the IFO Business Survey results match expectations. If the data is better than expected, the Euro could rise, which might make traders more cautious after ECB officials said interest rate cuts in 2026 might not be necessary. Traders will also watch the Eurozone Core Harmonized Index of Consumer Prices (HICP) data later today.
The EUR/USD pair might stay weak because the US Dollar is going up. The mixed labor market data from November in the US didn't really support the idea that the Federal Reserve will cut interest rates again. According to the CME FedWatch tool, there's now a 75.6% chance the Fed will keep rates the same at their next meeting in January, which is slightly higher than the 74% chance from a week ago.
Right now, the EUR/USD is trading slightly lower near 1.1710. But the outlook is still positive because the pair is still inside an upward trend pattern. Also, the 14-day RSI is above 50, which supports the positive trend. The price could go up towards its highest level in the past year, which was 1.1804 on December 16. If it goes down, the first support level is around the nine-day EMA at 1.1702, which is also close to the psychological level of 1.1700. If it continues to fall, it might test the 50-day EMA at 1.1636.
Germany's IFO institute is set to release its business survey for December on Wednesday at 9:00 AM GMT.
The headline IFO Business Climate Index is expected to rise slightly to 88.2 this month, up from the 88.1 reading in November.
The Current Assessment Index is expected to slightly rise to 85.7 in December from 85.6, and the Expectations Index is likely to drop a bit to 90.5 from 90.6.
How might the German IFO Survey impact the EUR/USD exchange rate?
The EUR/USD pair might not drop much if the IFO Business Survey results match expectations. If the data is better than expected, the Euro could rise, which might make traders more cautious after ECB officials said interest rate cuts in 2026 might not be necessary. Traders will also watch the Eurozone Core Harmonized Index of Consumer Prices (HICP) data later today.
The EUR/USD pair might stay weak because the US Dollar is going up. The mixed labor market data from November in the US didn't really support the idea that the Federal Reserve will cut interest rates again. According to the CME FedWatch tool, there's now a 75.6% chance the Fed will keep rates the same at their next meeting in January, which is slightly higher than the 74% chance from a week ago.
Right now, the EUR/USD is trading slightly lower near 1.1710. But the outlook is still positive because the pair is still inside an upward trend pattern. Also, the 14-day RSI is above 50, which supports the positive trend. The price could go up towards its highest level in the past year, which was 1.1804 on December 16. If it goes down, the first support level is around the nine-day EMA at 1.1702, which is also close to the psychological level of 1.1700. If it continues to fall, it might test the 50-day EMA at 1.1636.
