The Gfk survey on the consumer climate for Germany showed another modest improvement. The index rose to 9.9 in January, beating estimates of an increase to 9.6.
This was a slight improvement from December’s reading of a revised 9.7. The euro brushed aside the data which complements the recent increase in the Ifo business climate report.
EUR/USD Holding on Near Support
The common currency is firmly testing the support area of the 1.1000 level. Price action has the potential to post a correction off this level. As long as the support level holds, there are signs of a bullish divergence building up. The upside correction could see the EURUSD back at 1.1072 level.
