The euro has pushed above the 1.18 level on Tuesday. Currently, EUR/USD is 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 nose-dived in the second quarter. The initial estimate in July showed that the eurozone locomotive sustained a double-digit drop, with a decline of 10.1%. However, there was some good news on Tuesday, as the decline was not quite as steep as expected. The final GDP reading was revised upwards, to -9.7%. Still, 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 were down sharply in the second quarter.
Elsewhere, German business confidence continues to move higher. German Ifo Business Climate accelerated for 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 the release, declaring that “the German economy is on the road to recovery”.
EUR/USD Technical
EUR/USD posted gains in the Asian session but has given up ground in European trade
- 1.1830 is under pressure in resistance. The next resistance line is 1.1870
- 1.1764 is the first line of support. Below, there is support at 1.1741
- EUR/USD is putting upward pressure on the 10-day MA line. If the pair breaks above this line, it is a bullish sign for EUR/USD
