Forex News – German IFO Business Survey results boost euro

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The German IFO Business Survey results were released this morning while ago with much better than expect figures, helping give the euro a slight boost against the dollar.

The Survey gave a reading of 107.5 which was more than what economists forecast at 107, though still lower than the previous 108.7 reading.

The survey conducted by the IFO Institute for Economic Research in Germany a leading indicator of economic health. Is is derived by surveying about 7,000 businesses, asking respondents to rate the relative level of current business conditions and expectations for the next 6 months.

the IFO Business Survey is different from the ZEW Economic Sentiment Survey which is derived from investors instead if businesses. It surveys about 350 German institutional investors and analysts and asks them to rate the relative 6-month economic outlook for Germany.

EURUSD jumped after the data to a high of 1.3446 within a minute from a pre-data low of 1.3407.

Euro fell sharply since the open of the trading week today on concerns of the euro zone debt crisis. Europe is grappling with what to do with its banks as their enormous exposure to debt. Meanwhile, there have been rumours that the European Central Bank is planning on a 50 basis point rate cut at its next monetary policy meeting.