When is the German IFO survey and how it could affect EUR/USD?

The German IFO Business Survey Overview

The German IFO survey for December is due for release later today at 0900 GMT. The headline IFO Business Climate Index is seen a tad lower at 90.0 versus 90.7 previous.

The Current Assessment sub-index is seen arriving at 89.0 this month vs. 90.0 prior while the IFO Expectations Index – indicating firms’ projections for the next six months – is likely to come in at 92.5 in the reported month vs. 91.5 last.

Deviation impact on EUR/USD

Readers can find FX Street's proprietary deviation impact map of the event below. As observed the reaction is likely to remain confined between 3 and 30 pips in deviations up to 3.0 to -4.2, although in some cases, if notable enough, a deviation can fuel movements of up to 60 pips.

How could affect EUR/USD?

EUR/USD hovers around 1.2250, having recovered from daily lows of 1.2239.  Broad-based US dollar recovery lost legs in the last hour, as the bears regain control amid hopes for a potential US stimulus deal.

However, the further upside in EUR/USD appears elusive on the back of the coronavirus growth in Europe. Germany reported a record of about 34K new infections on Friday.

Ahead of the German IFO Survey, the spot drops 0.12% to 1.2251, with the immediate support seen at the 5-DMA of 1.2202. The next cushion awaits at 1.2191 (Thursday’s low). On the flip side, the spot will face resistance around 1.2274 (2020 high), above which 1.2297 (classic daily R1) could be tested.

Key notes

EUR/USD under pressure on dollar bounce, focus on German IFO Expectations

EUR/USD Forecast: Corrective fall could be a buying opportunity amid US stimulus hopes

Coronavirus update: Australia imposes border curbs, Germany reports record daily cases

About the German IFO Business Climate

This German business sentiment index released by the CESifo Group is closely watched as an early indicator of current conditions and business expectations in Germany. The Institute surveys more than 7,000 enterprises on their assessment of the business situation and their short-term planning. The positive economic growth anticipates bullish movements for the EUR, while a low reading is seen as negative (or bearish).