German Ifo Smashes Expectations Supporting Euro Amidst Russian Tensions
Date
2/22/2022 5:37:56 AM
(MENAFN- DailyFX)
EUR/USD ANALYSIS
- German Ifo ACT: 98.9; EST: 96.5
- IG Client Sentiment points to short-term downside.
Advertisement GERMAN IFO BUSINESS CLIMATE
index BEAT ADDS TO EURO TUG OF WAR
The business climate in Germany for the February period as well as expected future (6 months) reflects a positive outlook according to German Ifo data (see calendar below). Strong data across the board adds to the optimistic viewpoint after yesterdays PMI releases for both Germany and the Euro Zone. From an ECB perspective, pressure to tighten monetary policy is likely to intensify however the primary focus for markets across the globe remains on the Russia/Ukraine crisis. This should leave Euro upside limited as downside risk as long as the geopolitical situation remains.
ECONOMIC CALENDAR
Source: DailyFX Economic Calendar
TECHNICAL ANALYSIS
EUR/USD DAILY CHART
Chart prepared by Warren Venketas , IG
Resistance levels:
- 1.1400
- 20-day EMA /50-day EMA
Support levels:
IG CLIENT SENTIMENT DATA WEIGHING ON EURO
IGCS shows retail traders are currently long on EUR/USD , with 53% of traders currently holding short positions (as of this writing). At DailyFX we typically take a contrarian view to crowd sentiment resulting in a bearish disposition.
Contact and follow Warren on Twitter: @WVenketas
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