EUR flows: EUR/USD little changed on IFO

IFO was slightly stronger than the published consensus, but probably broadly in line with market expectations after the stronger than expected S&P PMIs yesterday. EUR/USD blipped slightly higher on the release but subsequently resumed the modest declining trend seen through the earlier part of the morning, with front end German yields not noticeable affected. It still looks hard for EUR/USD to advance beyond 1.07 until or unless there is some other data to support the relatively weak US PMIs seen on Tuesday.