What does Ifo tell about EUR exchange rates?

In the past the publication of the Ifo index was a major event on the European data calendar. It seems to have become irrelevant these days as it has hardly any effect on the decisive monetary policy. The ECB has committed itself until September 2016. 

"Marginal events are unlikely to change its QE policy in the foreseeable future. However, something else should become clear from the Ifo index, although indirectly, whether the EUR weakness seen over the past months will continue to brighten sentiment in the German industrial sector or whether the effect will either wear off or will be overshadowed by other factors", says Commerzbank. 

If that was to be the case deteriorating sentiment in the German industrial sector would indeed marginally increase the likelihood of the ECB having to become more expansionary at some stage than would seem necessary at present. 

And that would be relevant for EUR exchange rates. Admittedly, that is probably a little too remote for the FX market this morning, but situations such as these open up opportunities.