The U.S. dollar has fallen against all major currencies overnight, losing the most ground to the euro as the German IFO business climate topped expectations in September. USD traders will now shift their focus to the U.S. durable goods orders report. As of late, economists are forecasting for a 1.0 percent decline.
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Fundamental Headlines
- Japan to Release Chinese Boat Captain - Wall Street Journal
- "Macro" Forces Stump Stock Pickers - Wall Street Journal
- Eurozone Crackdown on Public Finances - Financial Times
-German Business Confidence Unexpectedly Reaches Three-Year High This Month - Bloomberg
- California Budget Deal "Framework" Reached in Talks, Schwarzenegger Says - Bloomberg
EURUSD: German IFO business climate in topped expectations in September as figures rose to 106.8 from 106.7 the month prior amid expectations of the reading falling to 106.4. The better than forecasted reading was largely contributed by the current assessment component, while expectations tapered the advance. It is worth noting that today's increase in the business climate report marks the highest reading since June 2007, and suggests that economic growth may remain intact for the next one to three months. Indeed, GDP in Europe's largest economy accelerated 2.2 percent in the second quarter, while the unemployment rate remains at its lowest level since 2008. However, expectations for future growth are blurry as governments will implement tough austerity measures in order to battle their high budget deficits. In turn, the euro pared yesterday's decline and now looks poised to test the pivot resistance at 1.3521.
Written by Michael Wright, Currency Analyst
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Michael Wright is the author of FX Headlines, Fundamentals vs. Technical's, Weekly Spotlight, and Forex Trading Weekly Forecast
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