- EUR / USD moved away from daily highs during the US session.
- Germany’s bullish data helped the shared currency strengthen against its rivals.
- The US dollar index is looking to break a two-day winning streak.
The EUR / USD pair gained ground during European trading hours and climbed to a daily high of 1.1844. However, the pair lost its bullish momentum and entered a phase of consolidation during the US session. At the time of writing, EUR / USD was up 0.3% on the day at 1.1820.
Optimistic German data supports EUR on Tuesday
Earlier today, data from Germany showed second-quarter gross domestic product (GDP) contracted 11.3% on an annual basis. This reading is better than the market expectation of -11.7%. Additionally, the IFO – Business Climate rose to 92.6 in August and the IFO – Current Valuation edged up to 87.9 to show sentiment improvement in Germany.
In the second half of the day, the strong rally in yields on US Treasuries helped the greenback find demand. The US dollar index, which fell below 93.00 amid risk flows earlier in the day, was last seen posting small daily losses at 93.12.
The Conference Board reported Tuesday that the US Consumer Confidence Index had fallen to 84.8 and was below analysts’ estimate of 93. Nonetheless, that data has had little or no impact. impact on the dollar, as investors seem to be waiting for FOMC chairman Jerome Powell. speech at the Jackson Hole Symposium Thursday.