German IFO Business Climate Index declines to 88.6 vs. 89.7 expected

• German IFO Business Climate Index retreated to 88.6 in June, pointing to a decline in business morale.
• EUR/USD holds steady slightly above 1.0700 in the European session.

The headline German IFO Business Climate Index declined to 88.6 in June from 89.3 in May. This reading came in below the market expectation of 89.7.

The Current Assessment Index remained unchanged at 88.3 in the same period, while the Expectations Index edged lower to 89 from 90.4.

Market reaction

EUR/USD clings to modest daily gains slightly above 1.0700 despite the weak sentiment data from Germany.