Investing.com - German business confidence unexpectedly rose in January, bolstering optimism over the motor of the euro zone economy, industry data showed on Thursday.
In a report, the German research institute Ifo said its Business Climate Index advanced to a seasonally adjusted 117.6 this month from a reading of 117.2 in December. Analysts had expected the index to dip to 117.1.
Meanwhile, the Current Assessment Index rose to 127.7 in January from 124.5 a month earlier, which was an upward revision from 125.4. The reading beat expectations that were for no change from December’s initial reading.
However, the Business Expectations Index, which measures attitudes toward business prospects over the next six months, decreased to 108.4 this month from the reading of 109.4 in December that was revised slightly lower from an initial 109.5. That missed estimates for the reading to decline to settle at 109.4.
The monthly index is based on a survey of around 7,000 German firms in the manufacturing, construction, wholesale and retail sectors.
Immediately following the report, EUR/USD was trading at 1.2404 from around 1.2395 ahead of the release of the data, while EUR/GBP was at 0.8705 from 0.8697 earlier.
Meanwhile, European stock markets were trading mixed. The benchmark Euro Stoxx 50 slipped 0.06%, Germany's DAX lost 0.16%, France’s CAC 40 traded up 0.21%, while London’s FTSE 100 gained 0.09%.