German business confidence expected to drop as growth slows

NEW YORK (Forex News Now) – The Ifo Institute for Economic Research is due on Wednesday to publish its monthly report on German business confidence in a report that could affect currency market trading.

The report is expected to show a drop in the business climate index to 107.5, down from the three-and-a-half-year high of 107.6 recorded in October.

The institute is scheduled to release the report at 9:00 A.M., GMT; as such the data is likely to be of interest to online FX traders.

According to analysts, the expected drop in business confidence is a result mainly of the recent slowdown in economic growth and the continuing debt crisis in the euro zone.

According to EUR/USD analysis, higher-than-expected business confidence could list the currency pair toward resistance of around 1.3500.

But should the date show a greater-than-forecast drop in business confidence, EUR/USD could be pushed toward short-term support around 1.3290.