The euro pushed above the 1.18 level on Tuesday. The EUR / USD is currently trading at 1.1812, up 0.21% on the day. EUR / USD received a boost from German final GDP, which was stronger than expected.
German GDP revised upwards
German GDP almost dipped in the second quarter. The initial estimate in July showed that the euro area locomotive maintained a double-digit decline of 10.1%. However, there was some good news on Tuesday as the decline was not as steep as expected. The final GDP reading was revised up to -9.7%. Yet this marked the sharpest decline in quarterly GDP since records were first kept in 1970. The Covid-19 pandemic has caused severe economic damage in the eurozone, and Germany has not been immune. In particular, German consumer spending and exports fell sharply in the second quarter.
Elsewhere, German business confidence continues to move higher. The German Ifo Business Climate accelerated in a fourth straight month, rising from 90.5 to 92.6 in August. Is the worst of the economic downturn behind us? Ifo President Clemens Fuest was encouraged by his release, declaring that “the German economy is recovering”.
EUR / USD Technical
EUR / USD presented gains in the Asian session but have given up on European trade
- 1.1830 is under pressure in resistance. The next resistance line is 1.1870
- 1.1764 is the first support line. Below is support on 1.1741
- EUR / USD puts upward pressure on the 10-day MA line. If the pair crosses this line, it is a bullish sign for EUR / USD