The shared currency spiked higher with renewed momentum against the American dollar in the European morning, sending EUR/USD to fresh session highs beyond 1.11 handle. The major jumped to fresh highs after Germany Ifo business conditions improved above markets expectations in May, although worsened only slightly from the previous month.
EUR/USD accelerate gains on upbeat IFO data
The EUR/USD pair trades 0.41% at fresh session highs of 1.1156, retreating from 1.1176 highs post Ifo release. EUR/USD prolongs its overnight gains and remains heavily bid after in line with estimates German GDP supported the EUR bulls. While the latest German Ifo print also added to upside in the main currency pair.
The headline Ifo Business Climate Index fell to 108.5 in May, slighlty below the 108.6 booked in April.
Markets had forecast a drop to 108.3 points in May. Meanwhile, the Current Assessment sub-survey, indicating current conditions in Germany, booked 114.3 points, after the previous month'sfigure of 113.9 and beat forecasts.
Moreover, broad based US dollar weakness following weaker publication of US macro data yesterday also contributes to the strength in the EUR/USD pair.
Meanwhile, traders now shift their focus towards ECB Chief Draghi’s comments which are underway while US CPI figures and Fed Chair Yellen’s speech will abe also closely watched.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1200 levels, above which gains could be extended to 1.12 23 (May 5 High) levels. On the flip side, support is seen at 1.1100 below which it could extend losses to 1.1063 (May 20 Low) levels.