The IFO comes from the Institut fur Forschung, and that translates into the Institute of research, and this indicator is highly respected all over Europe. The reason for that is that it is having a large base for the survey it represents so the outcome is viewed as accurate and reflecting the realities in the German economy, hence, influencing the Eurozone overall, hence influencing the single currency.
This survey takes into account more than 7000 businesses and respondents are being asked to answer questions about the current economic climate and the future six month economic climate.
The most important things to take into consideration when looking at the German IFO Business Climate are:
- release date: monthly, around 3 weeks into the current month;
- release time: 08:00 GMT, during the London trading session;
- one of the most important indicators in Europe;
- first tier data;
- high volatility levels.