Euro stands above 1.1650, supported by upbeat German macroeconomic data

The Euro (EUR) remains steady against the US Dollar (USD), maintaining a trading range above 1.1650, nearing a three-month peak of 1.1710. This strength is bolstered by a weaker US Dollar, affected by doubts surrounding the Federal Reserve's (Fed) autonomy following the Treasury Department's bond buyback plans. In the Eurozone, German economic indicators have offered support.

On Tuesday, the German IFO Business Climate Index for August climbed to 88.8, marking its peak in a year, up from 87.2 in July and surpassing market predictions of a modest increase to 87.2. Additionally, economic sentiment improved to 88.5 from 86.5 in the prior month, whereas the economic expectation gauge rose to 89.1 from 86.8 in July, both exceeding the market's expectations.

German GDP grew by 0.3% from April to June, surpassing earlier estimates of 0.2% and the first quarter's growth rate of 0.4%. The year-over-year figure has been revised upwards to 1%, from the preliminary estimate of 0.9%. Experts from ING have cautioned that the "short-term fair value for EUR/USD is just below 1.160," indicating a potential risk premium on the Dollar linked to the recent US Treasury buyback announcement.