- EUR/USD pulls back from 1.2180.
- German IFO Business Climate declines to 90.1 in January.
- ECB’s Lagarde, Panetta, Lane, Elderson due to speak later.
After a move higher to 1.2180 in early trade, EUR/USD run out of steam and has fallen to1.2150/40.EUR/USD weaker post-German data
The January German IFO survey disappointed.. The Business Climate eased to 90.1, Current Assessment deteriorated to 89.2 and Business Expectations dropped to 91.1, all readings were below estimates and highlighted the deteriorating morale of participants.
Rising coronavirus cases in Germany in addition to tighter lockdown restriction dragged on sentiment.
Joe Biden’s planned US $1.9 trillion stimulus package also appeared to be facing some headwinds from policymakers, owing to its size, which also dented risk appetite.
ECB President Lagarde will speak at the virtual Davos Forum on “Restoring Economic Growth”. Additionally, ECB’s Board members Lane, Panetta and Elderson are also due to speak later in the session.