EUR/USD breaks higher to test 1.1660 on ECB’s Mersch, German Ifo eyed

Dhwani Mehta FXStreet

The EUR/USD pair finally broke its overnight consolidative mode and jumped higher last hour in a bid to test the immediate resistance located near 1.1660 region.

EUR/USD awaits German Ifo

The spot continued to find fresh buyers near 1.1630 region and rallied nearly 30-pips to print fresh session highs of 1.1663 on the back of ECB policymaker Mersch’s optimistic remarks on the Eurozone’s growth prospects.

ECB’s Mersch: Ongoing economic expansion in Euro area provides confidence

Moreover, the US dollar stalled its recovery against its major rivals and came under renewed selling pressure in the Asian trades, which also prompted a fresh rally in EUR/USD. The USD index faded rejection at 93.91 levels and now trades near daily lows of 93.70 levels, down -0.10% on the day.

However, further upside looks dicey, as the latest downbeat Euro area manufacturing PMI readings continue to weigh on the sentiment around the Euro. Adding to this, markets also remain wary ahead of the German Ifo business climate release, which is expected to show a slight deterioration in the German business morale.

European Monetary Union Markit PMI Composite registered at 55.8, below expectations (56.2) in July

Germany Markit Manufacturing PMI below expectations (59.2) in July: Actual (58.3)

Later on Tuesday, the US consumer confidence data will provide fresh incentives to the US dollar, offering near-term trading opportunities to the markets.

EUR/USD Technical Set-up

According to Karen Jones, Analyst at Commerzbank, “EUR/USD is positive: No change, the market remains bid and further gains look likely. Nearby support is provided by the short term uptrend at 1.1382 and the accelerated uptrend at 1.1497 and while above here, there is scope for 1.1713/36 the August 2015 high and long term Fibo, here we would look for signs of profit taking. The 200 week ma is also found in this vicinity at 1.1797.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

GBP/USD drifts lower below 1.3250 on steady BoE rate path, traders await US jobs data

The GBP/USD pair loses traction to around 1.3240 during the Asian trading hours on Tuesday. A potential rate hike from the US Federal Reserve provides some support to the US Dollar against the British Pound. The US ADP employment data and the US Nonfarm Payrolls data will take center stage later this week.

EUR/USD looks to extend intraday descent below 1.1400 on firmer USD

The EUR/USD pair attracts some sellers during the Asian session on Tuesday, snapping a three-day winning streak and stalling its recent recovery from the lowest level since May 2025 set last week. Spot prices slip below the 1.1400 mark amid a firmer US Dollar and seem vulnerable to weaken further.

Gold crashes with Japanese Yen as stops likely triggered

Gold is down nearly 1.50% so far in Tuesday’s Asian trading, sitting at a fresh seven-month low as the key $3,950 psychological barrier gave way amid a renewed wave of selling.

Solana, Zcash, and Hyperliquid rebound while Bitcoin remains below $60,000

The broader cryptocurrency market remains under pressure with Bitcoin below $60,000 on Tuesday, while Solana, Zcash and Hyperliquid emerge as top performers over the last 24 hours. Retail sentiment remains bearish with the Fear and Greed Index around 17 on Tuesday, during early Asian hours, maintaining an “Extreme Fear” signal.

Just like Fed, is BoJ’s independence under threat?

When talking about central bank independence, most of the focus has been on Donald Trump’s pressure on the Federal Reserve. But a similar story, a quieter one for now, seems to be happening on the other side of the Pacific: Japan’s government may be testing the Bank of Japan’s independence.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The ECB Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Fed, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.