German business data for March is boasting higher than expected results creating a bullish scenario for EUR.
The German Ifo Business Climate Index for March showed better results than expected: 107.9 vs forecast 107.3, and previous 106.8. The index is analysed and published by the Ifo Institute for Economic Research. It rates the current German business climate and measures expectations for the next six months. It is a compound index based on a survey of manufacturers, builders, wholesalers and retailers.
The German Current Assessment, a sub-index of the German Ifo Business Climate Index which rates current business conditions in Germany, without considering future expectations, also showed good results, 112.0 as forecasted and 0.7 higher than 111.3 February figure.
Another sub-index of the German Ifo Business Climate Index - German Business Expectations which rates the expectations of businesses in Germany for the following six months also showed 0.9 gain in March versus 103.0 expected and 102.5 in February.
A higher than expected reading for all three indexes signals a positive or bullish scenario for the EUR. A lower than expected reading should be taken as negative/bearish for the common currency.
"The Ifo today and the euro zone PMI yesterday - show momentum for the region as a whole is strengthening," Daniele Antonucci, European Economist at Morgan Stanley told CNBC.
The Markit Economics purchasing managers' index (PMI), released on Tuesday, for the manufacturing and services sector also showed growth to 54.1 in March from 53.3 in February.
Overall, it seems that signs of improvement in the euro zone economy could be results of 1 trillion euro ($1.09 trillion) monetary-stimulus program launched by the European Central Bank on the 9th of March 2015 gaining success.
EURUSD currently trading at $1.097
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