Technical Bias: Bullish
- Ifo business confidence index rose to 107.9 in March, the highest level since July 2014.
- US durable goods orders declined unexpectedly in February, falling 1.4 percent.
- EURUSD looking to consolidate above the 1.10 handle.
The EURUSD was back in the driver’s seat on Wednesday, as German business confidence rose in March for a fifth consecutive month, while US durable goods orders declined unexpectedly.
The EURUSD climbed 80 pips to 1.0990. The pair broke the 1.10 barrier on Tuesday before consolidating in the low-1.09 region in the latter half of the trading session. The EURUSD faces initial support at 1.0866 and resistance at 1.1006.
In economic data, German business confidence increased in March, rising to its highest level since July 2014 on the back of the European Central Bank’s quantitative easing program. The Ifo business climate index for German trade and industry rose to 107.9 in March from 106.8 the previous month. A median estimate of economists called for a gain to 107.3.
The barometer of expectations increased to 103.9 from 102.5, while the gauge of the current climate increased to 112.0 form 111.3.
The survey data suggest that the Eurozone economy was responding favourably to the ECB’s €60 billion per month quantitative easing program, which was announced in January and put in motion this month. The program is expected to stabilize Eurozone CPI just below the 2 percent mark over the next two years.
In US data, durable goods orders declined unexpectedly in February, with a key gauge of business spending declining for the sixth consecutive month. Durable goods orders fell 1.4 percent, the Commerce Department said on Wednesday.