Euro holds back celebration of positive IFO data

It must be difficult for Euro bulls to contain their glee from the
better than expected IFO data prior to the US FOMC rate decision.
German IFO business confidence improved unexpectedly in October, with
the business climate index rising to 105.3 from 104.9 in September,
exceeding forecast of 104.5. Both current conditions and expectations
were more positive than expected as well. This indicates that "the
economic expansion will continue despite the increase in VAT next
year," said Hans-Werner Sinn, president of the IFO Institute. (German
value-added tax will rise to 19% in 2007 from 16% currently) That's a
very bullish sentiment. Despite this EUR-positive release, EUR/USD's
reaction was limited to a high of 1.2590- a resistance area mentioned
earlier- as the market treads cautiously ahead of the

Fed's policy statement at 1815 GMT. Can EUR/USD..