EUR flows: EUR little changed after IFO, M3
IFO and M3 too close to consensus to move EUR
Not much EUR reaction to the German IFO and Eurozone M3 data just released. The IFO was slightly on the strong side of the published consensus, but that consensus may in reality have been higher after the stronger than expected S&P PMI data last week. A strong expectations index was offset by a weaker current assessment, but the combination of the S&P PMI and the IFP survey suggests a mildly positive outlook for the German economy. There was nothing of any great significance in the M3 data, with both M3 and loan data broadly in line with consensus. EUR/USD is if anything marginally lower, but it’s hard to see a strong case for a EUR move either way on these numbers. The tone remains very rangy, with if anything a mild downside bias within the range, but a break below the month’s low of 1.1542 would require some news of significance.
