Jan 2023 released, ifo Business Climate Index Rises.
This survey is highly respected due to its large sample size and historic correlation with German and wider Eurozone economic conditions. It tends to create a hefty market impact upon release. Source changed the series from a base year of 2000 to a base year of 2005, as of May 2011, and changed series to include services, as of Apr 2018.
Why does this index matter to forex traders?
It’s a leading indicator of economic health – businesses react quickly to market conditions, and changes in their sentiment can be an early signal of future economic activity such as spending, hiring, and investment.
Follow today’s Miralfx economic calendar, Information and Forschung (ifo) Business Climate Index which had the most effect on EUR in the Forex Market!
Although, being greater the ‘Actual’ index than ‘Forecast’ is good for currency, the forecast index was (90.2) and the actual reported (90.2) which is raised in comparison with last month’s (88.6).
Level of a composite index based on surveyed manufacturers, builders, wholesalers, services, and retailers. Sentiment in the German economy has brightened. The ifo Business Climate Index rose to 90.2 points in January, up from 88.6 points in December. This is due to considerably less pessimistic expectations. Companies were, however, somewhat less satisfied with their current situation. The German economy is starting the new year with more confidence.
