EURUSD: Euro Erases Gains After Weak IFO Numbers

The single currency failed to hold intraday gains and dropped 30-40 from daily highs to trade relatively unchanged on the day during the US session, hovering near 1.1350.

Earlier in the day, the German IFO surveys came out on the negative side when the business climate survey decelerated to 102.0 in November from 102.9 in October and the expectations (the most important subindex) slowed from 99.7 to 98.7. Both numbers came well below analysts’ forecasts. The current assessment gauge fell as well and printed 105.4 from 106.1 in the previous month.

From other news, ECB’s Draghi, Nowotny and Coure held speeches today, but failed to spur any significant volatility.

Sentiment remains positive during the US session as stocks are quickly erasing last week’s losses, with the SP500 index up 1% and the Nasdaq index trading 1.5% stronger.

US yields moved higher as well, but not so substantially, while commodities were rallying on Monday as well. The dollar index was flattish heading into the London close, held mainly by the soaring USDJPY pair.  

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