German IFO Does Nothing for the Euro
Written by Terri Belkas, Junior Currency Analyst
Positive German IFO results failed to boost the euro during the early European session, as the currency remained in a narrow range. The stronger than expected IFO business climate reading hit 106.8 for the month of June, vs. the estimated 105.0 and higher than May’s revised 105.7. The sentiment index has been buoyed by improved export expectations, as well as resilient German competitiveness in the arena. The import price index for Germany fell in line with expectations for May, gaining 0.2% for the month and 7.5% in annual terms. Hawkish signals sent by both the European Central Bank and the US Fed may keep the euro on edge against the greenback, as speculation has mounted on more aggressive rate hikes than previously anticipated. As of 8:52 GMT, the EUR/USD traded at 1.2590, just above Monday’s New York close of 1.2580.
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