The euro held its own, for the most part, on Monday as the currency only slipped against the US dollar as it continued to pull back from 1.4750. There was no economic data on hand, but the currency will face event risk on Thursday as the German IFO survey on the business climate is projected to rise to a one-year high of 92.0 from 90.5, led by rising expectations and mild increases in sentiment on currency conditions. Indeed, a steady rally in European equities though July and September to the highest levels since October 2008 along with indications of burgeoning economic growth in Germany is likely to underpin the case for a rise in business sentiment. Surprisingly strong results could lead the euro to gain following the news on a very short-term basis, but disappointing data would likely have a greater impact, and could trigger sharp declines in the currency.
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