| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 08:00 | Germany | IFO - Current Assessment | June | 86.1 | 86.5 | 86.2 |
| 08:00 | Germany | IFO - Expectations | June | 89 | 90 | 90.7 |
| 08:00 | Germany | IFO - Business Climate | June | 87.5 | 88.3 | 88.4 |
EUR traded mixed against other major currencies in the European session on Tuesday as investors continued to closely watch the Israel-Iran developments and digested Ifo Institute’s latest monthly survey on business climate in Germany, the Eurozone’s largest economy.
The single European currency strengthened versus USD, weakened versus GBP, JPY and AUD, and changed little versus CAD.
Reports about the ceasefire between Israel and Iran boosted investors’ risk sentiment. However, initial optimism was somewhat disturbed by the Israel Defense Force’s claim that Iran violated this ceasefire and it would respond with force. U.S. President Donald Trump, however, called on Israel not to drop bombs on Iran to save the fragile truce.
Ifo Institute reported that its latest survey of German businesses revealed an improved sentiment among companies in June. Ifo’s business climate index for Germany rose to 88.4 this month from 87.5 points in May. This marked the highest reading since May 2024 (88.9) and slightly exceeded economists’ expectations of 88.2.
The June improvement reflected an uptick in the companies’ assessments of the current business situation (the corresponding index rose to 86.2 from 86.1 in May) and a jump in their expectations for the next six months (the corresponding index rose to 90.7 from 89.0 in May, hitting the highest level since April 2023 (90.8)).
The latest findings of Ifo’s survey raised hopes that the euro area’s largest economy is gaining momentum amid expectations of a boost in public spending.