IFO Survey from Germany will be looked upon for fresh impetus in the European session but is set to have a limited impact on the euro as risk aversion takes over. Economists at ING expect the EUR/USD pair to extend its decline to the 1.1250/00 region.

German Ifo to have a negligible impact on the euro amid worsening external environment

“The German Ifo should have a contained market impact despite likely sending some encouraging signs on the recovery”.

“Market jitters caused by geopolitical tensions may well persist in the next few days and trigger an extension of the EUR/USD drop to the 1.1200-1.1250 area.”