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Technical Analysis EURUSD : 2014-10-27

Technical Analysis EURUSD : 2014-10-27

Euro return expectation

The main fundamental event for today is the German Ifo Business Climate release at 10:00 CET. The composite index is based on a survey conducted among manufacturers, construction companies, as well as wholesalers and retailers, calculated by German Institute for economic research Ifo. Each month a survey is run among 7000 business representatives regarding the favorable business climate and market expectations for the next six months. Note that the index is interconnected with the main macroeconomic indicators of the EU. Rapid reaction to changing business climate provides leading signals relative to possible changes of spending costs, investment funds and attracting manpower in Germany.

The index includes 2 indicators: assessment of the current economy state and evaluation of expectations. The second component has a greater importance for investors. The German economy remains the main driver for the European markets development: more than 20% of the EU GDP. This is the biggest rate among other European member states. For this reason, we expect the Ifo index to affect greatly the European currency rate.

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