EUR/USD Daily Forecast – 26 January

Monday's session brought German Business Climate figures.Sentiment among German businesses weakened at the beginning of the year. The Ifo Business Climate Index for German industry and trade fell to just 107.3 points in January from 108.6 points in December. Analysts were predicting smaller decline to 108.5. Assessments of the current business situation were scaled back slightly, but remained very good. Business expectations, by contrast, clouded over significantly. The year started with an unpleasant surprise for the German economy.

EUR/USD Daily Forecast – 26 January

Euro was pushed higher in the course of the yesterday's session finding area around 1.08 handle to be supportive enough in order to rebound. However, with no data releases trading was in tighter range with resistance near 1.0850 level. We cannot expect any larger movements tomorrow as well. At the moment, pair has initial support around 1.0780 level and 1.0750 area in extension, while we can expect resistance around Friday's highs at 1.0880 level. Read more...

German Business Climate fell more than expected

EUR/USD Daily Forecast – 25 January

Friday was marked by French and German Manufacturing and Services PMI data. Flash Germany Manufacturing PMI fell 52.1 from 53.2 in December what is a 3-month low. Flash Germany Services Activity Index also declined to 55.4 from 56.0 in December, what is a 3-month low. Germany’s private sector economy was largely unaffected by the recent stock market turmoil and intensifying uncertainty stemming from the so-called migrant crisis at the beginning of the year, according to latest survey results. Although the headline index (which measures the combined output of manufacturing and service sector firms) fell to a threemonth low, the latest reading was higher than the 2015 average and indicative of robust, although unspectacular, growth of the German economy.