Hong Kong stock index extended a decline sparked by China’s tech crackdown. Tesla posted better-than-expected results. Jump in!
EUR and weak data from Germany
Germany will release Ifo Business Climate Index on Friday at 11:00 MT time.
Instruments to trade: EUR/USD, EUR/GBP, EUR/JPY, EUR/AUD
You don’t have to be a fortune teller to say that German business will be hit hard by the coronavirus-related lockdown. In March, the index fell to 87.7 points from 96 in February, its biggest drop since 1991. This was the preliminary estimate: the final number turned out to be even grimmer: 86.1.It’s time to remember that Germany is the key economy of the euro area. When it falters, a shadow falls on the entire region and hence on the EUR. Such pairs as EUR/GBP and EUR/JPY will be especially sensitive to the news right after the release. As for the EUR/USD, it will move actively later that day when durable goods orders come out in America. The economy which shows less negative results will see its currency go up.
If German Ifo Business climate index is greater than the forecast, the EUR will rise. If the indicator disappoints, the EUR will fall.
Check the economic calendar
The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
PMI reports from the EU, the UK, and the USA will be released during the day!
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