After weakening for three consecutive months, sentiment among German businesses brightened slightly in March. The Ifo Business Climate Index for German industry and trade rose to 106.7 points in March from 105.7 points in February. Analysts were forecasting increase to 106.2. Assessments of the current business situation improved, reaching their highest level in six months. After last month’s sharp decline, expectations also recovered somewhat. German businesses are less sceptical than in February.

In manufacturing the business climate improved slightly, after last month’s sharp decline. Manufacturers were once again more satisfied with their current business situation. After February’s downturn, business expectations recovered slightly. The improvement in manufacturing was mainly due to consumer goods producers.

 

Euro is currently being traded few points above 1.12 level. Pair is likely to find support around 1.1150 handle and resistance above 1.1250 level. Later today, ZEW Economic Sentiment figures are scheduled for a release.