German GDP and IFO business climate data exceed expectations, supporting the Euro amid broader USD weakness ahead of key US inflation data.
The Euro remains steady above 1.1650 USD, supported by stronger-than-expected German macroeconomic data. The EUR/USD pair is trading near three-month highs, driven by a softer US Dollar and improved sentiment in the Eurozone.
Germany’s GDP grew 0.3% quarter-over-quarter in Q2, revising upward from preliminary estimates, while the IFO Business Climate Index rose to 88.8 in August, its highest level in a year. Both current conditions and economic expectations surpassed market forecasts, signaling resilience in Europe’s largest economy.
Investors remain cautious ahead of Wednesday’s US PCE Price Index release and Fed Chair Jerome Powell’s speech at the Jackson Hole symposium, which could influence USD direction.