The Germane IFO release of April could give the single currency the support to continue its gains versus the greenback above 1.32. The germane IFO business climate came at 83.7 and the market was waiting for just 82.3 and the IFO expected conditions came better than the market expectation of 82.6 at 83.9.

In this same time the British pound has suffered today across the broad from the weak GDP figure of the first quarter which declined by 1.9% q/q and by 4.1% y/y. We wait right now for the release of US durable goods orders of March which are expected to decrease by .8% m/m excluding the transportations orders and 1.4% broadly.

We also wait for the US new home sales which are expected to increase by just .9% monthly from 4.7% in Feb. these data is awaited to come after series of weak housing data as March existing home sales have fallen by 3.0% to a 4.57M y/y from 4.71M in Feb following the housing starts slumping in March to .51m and the building permits falling to .513m.The forex market is expected to keep taking its directions clues from the equity market performance after these data.

Best wishes

FX Consultant

Walid Salah El Din
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