EUR/USD muted near 1.0880 on IFO

The European currency stayed mostly apathetic following the release of the German IFO, with EUR/USD hovering over the 1.0880/75 band.

EUR/USD little changed on upbeat IFO

The pair kept the daily range despite the German IFO has surprised markets to the upside for the current month.

In fact, Business Climate, Expectations and Current Assessment in Germany have all come in above expectations for the month of October at 110.5, 115 and 106.1, respectively. Further data in Euroland today also showed Italian Industrial Sales and Industrial Orders improving during August from July’s readings.

Today’s results add to Monday’s better-than-expected advanced PMI figures in Germany, France and the EMU, keeping dips in the pair shallow amidst the prevailing bid tone around the buck.

Later in the session, President M.Draghi will give a lecture on ‘Stability, Equity and Monetary Policy’ in Berlin, while the S&P/Case-Shiller index, the IBD/TIPP Economic Optimism index and the Consumer Confidence gauge tracked by the Conference Board are all due across the pond.

EUR/USD levels to watch

The pair is now up 0.04% at 1.0884 facing the next resistance at 1.0948 (2014-2016 resistance line) followed by 1.1012 (7-month resistance line) and then 1.1041 (post-ECB spike Oct.20). On the other hand, a breakdown of 1.0820 (low Mar.10) would target 1.0709 (2016 low Jan.5) en route to 1.0538 (low Dec.3 2015).