EUR/USD resilient above 1.08 as IFO data awaits

The week before last the EUR/USD came close to the 1.09 handle for the first time since it topped out above that level back at the end of March. However, the failure to reclaim that 1.09 level after the latest US CPI data missed on estimates was not exactly encouraging and that was partly due to the outlook for a June rate cut from the ECB. The rebound in US yields last week helped to push the Euro back towards the 1.0800 handle on Thursday and Friday. However, that has capped the downside since. The EUR/USD closed on Friday at 1.0847. The range seen so far today has been covered by 1.0838 to 1.0856. Now, at 8am GMT we get the only major release of the day- the latest German IFO business climate index. This is forecast to improve across all 3 matrix, with current conditions expected to rise to 89.9 from 88.9. Given the market closures in the UK and the US today, any reaction to the data might be curtailed, but that is not a foregone conclusion to any significant surprise. We shall have to see what emerges here a little later. The EUR/USD is currently trading at 1.0848