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German Business Sentiment Rises Further, Supporting the DAX30 and the EUR

It’s been a relatively quiet start to the day on the Eurozone economic calendar.

With no major stats to consider ahead of the European open, German business sentiment was in focus this morning.

German IFO Business Climate

In April, Germany’s IFO Business Climate Index rose from 96.6 to 96.8.  For March, the index had risen from 92.7 to 96.6.

According to the April survey,

  • Companies raised their assessments of the current business situation, with the current assessment sub-index rising from 93.1 to 94.1.
  • Firms were marginally less optimistic, however, with the business expectations sub-index falling from 100.3 to 99.5.

By Sector:

  • In Manufacturing, the business climate index rose from 24.0 to 25.3, its highest level since May-2018. Manufacturers’ current assessment supported the rise in April. Optimism across the sector declined, however.
  • For the services sector, the business climate index fell from 6.6 to 3.5. Firms were less satisfied with their current situation, with optimism also waning.
  • In trade, the business climate index rose from -1.4 to -0.5. A marked improvement in assessments of the current situation drove the index higher. There was increased pessimism regarding the coming months ahead, however.

Market Impact

Ahead of the stats, the EUR had risen to a pre-stat and current day high $1.21169 before falling to a pre-stat and current day low $1.20887.

In response to the prelim PMI figures, the EUR rose from $1.20973 to a high $1.21029 before easing back.

At the time of writing, the EUR was up by 0.01% to $1.20988.

EURUSD 260421 Hourly Chart

The DAX30 was up by 0.07% to 15,291.01, which was down from a current day high 15,325.89.

Next Up

March durable goods and core durable goods orders from the U.S.