We could get an IFO number above expectations, because data across the region is looking stronger. The market will be pretty pessimistic in that case, especially given the hawkish rhetoric we've had from the ECB.
Quotes about ifo (6 Quotes)
There is a strong wait-and-see mode ahead of key economic events in the US, including tomorrow's GDP release and next week's FOMC meeting. This weighed on the euro despite a supportive strong German IFO survey.
The firmer Belgian and Italian producer sentiment surveys released yesterday support the view of a strong growth reading on the Germany IFO survey out today.
The euro was well supported after IFO. We believe it can go up higher but prefer to buy it on dips. I expect eurodollar to test the next resistance of 1.2323 today.
The IFO survey hit a 14-year high... receding oil prices and an exchange rate that has stayed below the 1.20 figure for most of the month has buoyed business confidence in the region and bodes well for future prospects of growth in Q1. The news also helps to buttress the expected European Central Bank decision to raise rates to 2.5 at the upcoming March 8 meeting.
The German IFO survey took all the wind out of any hope for successful intervention. In order to intervene, they need to have some improving fundamentals.