Ifo Institute for Economic Research said that German business morale deteriorated unexpectedly in January as the outlook darkened.

Business climate index fell to 95.9 after 96.3 in December. Economists had expected an increase to 97.0. This monthly indicator published by the IFO economic institute based in Frankfurt defines - via a survey of 7,000 entrepreneurs - the level of confidence in the German economy. This index has a great influence on the Euro currency because it highlights the German economic dynamism and investment levels for the next 6 months.

IFO also said that current economic assessment fell to 99.7 points compared to last month's 98.8 and 99.2 anticipated. Expectations Index - indicating firms' projections for the next six months - came in at 92.9, down from previous month's 93.8 and missed expectations (95.0)