German Ifo

The Euro drew support on Tuesday from upbeat sentiment among investors, a favourable revision to second-quarter German GDP data and another increase in the Ifo Business Climate index, although analysts are still looking for the Euro-to-Dollar rate to consolidate beneath recent highs.

The Euro was under the thumb of a resurgent Dollar Wednesday after the latest Ifo Institute for Economic Research survey showed German companies becoming more pessimistic about their current business situation and future prospects, reversing some of the minor improvement seen back in March. 

The Euro was left treading water Friday after a series of statistics showed the German economy on life support early in the New Year while inflation data confirmed that Eurozone consumer price pressures are going nowhere fast, which is a twin headache for the European Central Bank (ECB).

Germany's most prominent leading indicator, the Ifo Business Climate index, plunged in January, adding to latest growth concerns.

The Euro rose Tuesday even after the latest Ifo business sentiment survey revealed a fourth consecutive deterioration in activity and the forward outlook for companies in Germany, but headwinds are mounting for the currency. 

The German economy faces a tepid finish to 2018 following a weak third-quarter and after hat-trick of business surveys showed headwinds to growth mounting in October, but economists at Berenberg Bank say the slowdown is just temporary.