The headline German IFO Business Climate Index dropped to 84.7 in December from 85.7 in November. The data came in below the consensus 85.6 print.
Meanwhile, the Current Economic Assessment Index rose to 85.1 in the same period from 84.3 in November, beating the estimated 84.0 figure.
The IFO Expectations Index, which indicates firms’ projections for the next six months, fell sharply to 84.4 in December vs. 87.2 in November and 87.5 expected.
EUR/USD has come under fresh selling pressure following the mixed German IFO survey. At the time of writing, the pair is trading 0.27% lower on the day at 1.0480.
The Euro is the currency for the 20 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day, according to data from the Bank of International Settlements. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% of all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%).