- EUR/USD trades around 1.1812 seen during early European trading hours.
- Trade and vaccine optimism help the pair to gain ground.
- Risk-on mood work against the dollar.
The US-China trade optimism is helping the euro to advance higher against the dollar in Tuesday trading; EUR/USD has been trading above 1.18.
Dollar appeal was in the wane due to the better mood in the financial markets. S&P 500 futures were trading at all-time highs while the Asian indices traded higher with Japan’s Nikkei and South Korea’s Kospi gaining more than a Percent today. Chinese stocks have pulled back from the highs of today, but are still trading in the green.
The pro-risk mood got a fillip from the positive news on the coronavirus vaccine and the trade optimism. The US and China officials agreed on Monday to pursue necessary steps to ensure the success of the phase-one trade deal between the two largest economies in the world.
A Financial Times report said that the Trump administration might consider providing “emergency use” approval for the experimental coronavirus vaccine from AstraZeneca and Oxford University. The go-ahead might come before the presidential elections in November.
The EUR/USD had formed a Gravestone Doji candle on Monday, a bearish signal, but the positive triggers today helped the pair to stage a comeback from the weakness in the early Asian session.
Now, the pair traders would look at final reading for the German second gross domestic product. If the numbers miss the preliminary estimates by a wide margin, then it would be not suitable for the euro. German IFO – Expectations index is due today and an above than estimate reading could help the bulls.