German IFO Business Climate Index beats estimates with 92.6 in Aug, EUR/USD keeps highs

• German IFO Business Climate Index came in at 92.6 in August.
• IFO Current Economic Assessment stood at 87.9 this month.
• August German IFO Expectations Index arrived at 97.5.

The headline German IFO Business Climate Index came in at 92.6 in August, stronger than last month's 90.5 while beating the consensus estimates pointing to a reading of 92.2.

Meanwhile, the Current Economic Assessment arrived at 87.9 points in the reported month as compared to last month's 84.5 and 87.0 anticipated.

On the other hand, the IFO Expectations Index – indicating firms’ projections for the next six months, came in at 97.5 for August, up from the previous month’s 97.0 reading and weaker than the market expectations of 98.0.

About German IFO

The headline IFO business climate index was rebased and recalibrated in April after the IFO research Institute changed series from the base year of 2000 to the base year of 2005 as of May 2011 and then changed series to include services as of April 2018. The survey now includes 9,000 monthly survey responses from firms in the manufacturing, service sector, trade and construction.

Market reaction

EUR/USD trades near daily-highs of 1.1835 on the mixed German IFO data, as broad US dollar weakness continues to underpin. The spot is up 0.40% on the day.