Release Explanation: The Information und Forschung (Information and Research) report is based on a monthly survey from firms in manufacturing, construction, wholesaling and retailing. “The firms are asked to give their assessments of the current business situation and their expectations for the next six months,” Trade Team said. Trade Desk Thoughts: The German IFO Business Climate bounced from a 26-year low in April, gaining 1.6 points. The index rose to 83.7 in April, the second increase in the last 12 months. 

“The IFO Business Climate release is inline with the other important reports coming from the region, which show that the pace of contraction has slowed over the past few months. Estimates are that the German economy will contract approximately 3% this year, the worst economic performance since World War II,” Trade Team said.

Forex Technical Reaction: The euro jumped 35 pips immediately after the release. Since the new trading day began, the euro has risen 95 pips and is currently testing the resistance area formed by the 20 and the 100-day simple moving averages.