25.08 - EUR/USD is regaining positive traction on Tuesday
- by George Solotarov
The shared currency picked up pace during the European session and pushed the EUR/USD pair to fresh daily tops, around the 1.1830 region post-German Ifo survey. Following the previous day's intraday pullback of around 65 pips, the pair caught some fresh bids on Tuesday and was being supported by a combination of factors. The global risk sentiment remained well supported by optimism over a potential vaccine and treatment for the highly contagious coronavirus disease. The risk-on flow undermined the US dollar's relative safe-haven status and assisted the EUR/USD pair to regain some positive traction.
Meanwhile, the shared currency got an additional boost after the final version of the German GDP was revised higher to show that the economy contracted by 9.7% during the second quarter of 2020 as against 10.1% estimated earlier. Adding to this, the German Ifo Business Climate Index rose to 92.6 in August from the 90.5 previous and surpassed consensus estimates pointing to a reading of 92.2, which remained supportive of the modest uptick.