Euro in Play with German IFO to Show Business Outlook Rose for Third Month (Euro Open)

The Euro consolidated near the 1.47 level in overnight trading, yielding a flat result ahead of the opening bell in Europe. The British Pound advanced, adding as much as 0.3% against the greenback. We continue to hold a short GBPUSD position, initially targeting 1.6112.


The Euro may see near-term gains as Germany’s IFO Survey shows that business confidence in the Euro Zone’s largest economy rose for the third straight month to hit the highest level since May 2008, but sentiment may not be supportive in the longer term.





Key Overnight Developments





• Japanese Trade Surplus Shrinks on Export Weakness


• Australia's New Home Sales Matched Record Gain in August


• RBA Says Financial System Resilient But Risks Remain