The latest fundamental data from Germany, the largest economy within the Eurozone and the driving force for the overall economy, shows business morale improving finally this year. IFO had reported that August's readings were improved across the board, with the current assessment coming in at 106.4, above the 105.4 expected, while business climate and expectations came in at 103.8 and 101.2, respectively, both beating analysts' predictions. Despite the news, the EUR/USD barely and only briefly moved higher.
As reported at 11:27 am (BST) in London, the EUR/USD was trading at $1.1614, down 0.07%; the pair earlier hit a peak of $1.6537 while the low is at $1.15947. The EUR/GBP is trading at 0.9044 Pence, down 0.13%; the pair ranged from 0.90350 Pence to 0.90588 Pence.
Trade Hopes Helped German Outlook
Analysts say that the IFO readings were upbeat because of the truce formed between the EU and the US which gave corporate executives some optimism over the brewing trade problems. Last month, President Trump had assured the EC President Jean-Claude Juncker that tariffs on European cars would not be imposed even as both sides discussed further ways to craft a trade deal.