EUR/USD looks to close with modest daily gains above 1.1800
- EUR/USD pulled away from daily highs during the American session.
- Upbeat data from Germany helped the shared currency gather strength against its rivals.
- US Dollar Index looks to snap two-day winning streak.
The EUR/USD pair gained traction during the European trading hours and climbed to a daily high of 1.1844. However, the pair lost its bullish momentum and has gone into a consolidation phase during the American session. As of writing, EUR/USD was up 0.3% on the day at 1.1820.
Upbeat German data support EUR on Tuesday
Earlier in the day, the data from Germany showed that the Gross Domestic Product (GDP) in the second quarter contracted by 11.3% on a yearly basis. This reading came in better than the market expectation of -11.7%. Moreover, the IFO - Business Climate rose to 92.6 in August and the IFO - Current Assessment edged higher to 87.9 to show improving sentiment in Germany.
In the second half of the day, the sharp upsurge witnessed in the US Treasury bond yields helped the greenback find demand. The US Dollar Index, which dropped below 93.00 amid risk flows earlier in the day, was last seen posting small daily losses at 93.12.
The Conference Board reported on Tuesday that the Consumer Confidence Index in the US slumped to 84.8 and fell short of analysts' estimate of 93. Nevertheless, this data had little to no impact on the USD as investors seem to be waiting for FOMC Chairman Jerome Powell's speech at the Jackson Hole Symposium on Thursday.
Technical levels to watch for