The publication of the IFO business feeling was in line with the expectations in the main figure (86.7 vs. 85.3 above) and offered upward surprises in both subscripts of current evaluation and expectations, says Shaun Osborne, Head of Strategy of Scotiabank FX.
The ECB hawks suggest a pause
“The surprises in the data follow the best PMIs than expected on Monday, which suggests a possible improvement in economic perspectives for Germany and Europe in general. Improvement in soft data is useful, since market participants consider a positive change in the tone of the owners related to trade and, specifically, the possibility of ‘pauses’ in the automotive tariffs of the US
“The headlines of the ECBs have also inclined towards a hard line position with comments from the Governing Council of the ECB, Kazimir, suggesting a pause in the Central Bank’s flexibility cycle.”
“The EUR is negotiating flat in front of the USD, consolidating just above the support around 1.08. The recent setback seems to be stabilized, but we will need to see a break through the middle zone of 1.08 to consider the possibility of a new upward trend.”
Source: Fx Street

I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.