100+ Global Companies Push Governments to Prioritize Electrification for Economic Growth 
Canada Imposes 10% Tariff on Canned Vegetable Imports to Protect Domestic Industry 
China Keeps Loan Prime Rates Unchanged for 13th Straight Month as Policymakers Prioritize Credit Demand Recovery 
German Industry Employment Falls to Lowest Level in a Decade 
Dollar Hits One-Month High as Hawkish Fed Outlook Boosts Greenback 
Trump Says No Hormuz Strait Tolls During 60-Day Iran Ceasefire 
France Faces Long Road to Economic Rebalancing as Weak Demand and High Rates Weigh, Says Citi 
Japan Signals Readiness to Intervene as USD/JPY Nears 161 Amid Yen Weakness 
Japan Inflation Stays Below BOJ Target Despite Rate Hike and Rising Energy Cost Risks 
China’s AI Manufacturing Boom Masks Weak Consumer Economy, Citi Says 
Asian Currencies Stabilize as Dollar Holds Near Two-Month High After Fed Hawkish Signal 
Oil Prices Slide as U.S.-Iran Deal and Hormuz Reopening Ease Supply Concerns 
Fed Chair Kevin Warsh Signals Policy Overhaul as Hawkish Rate Outlook Rattles Markets 
Russia Stocks End Flat as MOEX Index Hits New 52-Week Low; Gold Falls and Oil Mixed 
Italy’s Economy Outpaces Eurozone Peers as Investment Spending Fuels Growth 
Canada, British Columbia Launch $5 Billion Infrastructure Partnership to Boost Housing, Transit, and Healthcare 
The German Ifo business climate index surprised markets to the upside, suggesting that German businesses are brushing aside potential risks like Brexit, Trump or Le Pen. German Ifo business climate index for March came in at 112.3 points, its highest level since July 2011. Data beat analysts’ expectations for a slight rise to 111.1 for the month.
The boost to the headline index came from both components of the business climate index. Improvements were seen in the sub-indices for both current trading assessments and future expectations, which rose to 119.3 and 105.7 respectively. The trade and industry component rose to 17.4 from 15.0 with a strong gain in the manufacturing sector. Construction edged higher on the month with the current situation at the strongest level since 1991. Retail confidence was also higher, although there was a retreat in wholesaling after a surge seen last month.
Data follows last week’s PMI surveys, which suggested the German economy was in its best health for six years. Moreover, demand from the emerging markets has leapt in past months, after a general stagnation in the two years before. German businesses largely muted to risks from Brexit, Trump’s protectionism and the advance of anti-establishment forces in the eurozone. Upbeat Ifo business climate data adds to the evidence that euro zone's biggest economy is gaining momentum.
"German GDP should rise significantly in the first quarter; we anticipate a plus of 0.7% on the fourth quarter. For the full year in 2017, we expect a growth rate of 1.6%. Chancellor Merkel is gaining tailwind from this economic growth," said Commerzbank in a report.
EUR/USD was trading at 1.0876, up 0.74 percent at around 1200 GMT. Markets now await data from the European Commission which will publish a gauge for economic confidence in the 19-nation currency bloc on Thursday, and the European Union’s statistics agency will release March inflation data on Friday.
Technical studies are bullish and support further upside in the pair. The major finds stiff resistance at 1.0884 (200-DMA). Break above 200-DMA is likely to take the pair higher. We see next major resistance at 1.0950 levels (weekly 50-SMA). FxWirePro's Hourly EUR Spot Index was neutral at 18.1931. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
