Get ready, guys. The German IFO Busines climate data is due soon. The European economic data has shown an improvement in different sectors of the economy, but Europe still has a long way to go until it gets where it wants to. More or less the same as many developed economies, no economy right now is running at full capacity. However, the situation has been improving in the last few months. 

The ECB (European Central Bank) stimulus package is starting to have its effects in the real economy at last. Only yesterday the data for the Eurozone service and manufacturing sectors jumped higher to some considerably good levels, beating the expectations as well. That didn´t help the Euro much though. 

Now, in about 15 minutes, we´ll get to see how the business climate is in Germany, which will offer a sneak preview of the wider Eurozone business climate. The previous numbers were a good high and this month´s numbers are expected to be slightly better, but I don´t expect anything spectacular. In fact, the risk is on the downside.

The market is expecting some good numbers, so if they are disappointing, then the Euro is likely to be under pressure and the negative market sentiment towards the Euro might push EUR/USD further below. Personally, I´m eying the 1.08 level. That´s the line in the sand for me. If that support level goes, then 1.05 will be in sight.