Euro Accelerates Advance Following Better Than Expected IFO Report

The Euro is trading with some remarkable upward momentum against the dollar this morning after the German IFO report turned out better than expected ( forecast 82.4 actual 83.7).

EURUSD was already in an upside momentum before the report, breaking the two resistance levels 1.3041 and then 1.3094 which were mentioned on yesterday’s post.

This morning the pair is trading well above 1.32 with a next week possible target of 1.3336. This level also marks the pair’s next resistance area.

The British pound was lagging behind other majors in its advance against the dollar this morning, thats ahead of the U.K GDP and Retail Sales reports due at 9:30 GMT. It is possible that later on the pound will join the party and target 1.47 or higher, but that play is likely only for as long as the above reports will not cripple whatever momentum the pound has against the dollar at this stage.

Later into the trading day we have the U.S Core Durable Orders (13:30 GMT), and the New HomeSales reports (15:00 GMT). These might affect risk aversion/risk appetite cycles in the market - with a worse than expected results possibly rising demand for safe haven currencies and the opposite.