Eurozone leading indicators have turned firmer, with Germany\u2019s IFO business climate index rising to 86.6 in July from 85.7 in June, a move driven by expectations. The improvement aligns with gains in the Eurozone\u2019s July PMI and the ZEW index, pointing to a recovery in economic activity while inflation remains above target.<\/p>\n
Markets have largely priced the likelihood that the ECB resumes tightening in September. Swaps imply 90% odds of a 25 bps rate rise at the 10 September meeting, which may cap the Euro\u2019s scope for further gains against the US dollar.<\/p>\n
In technical terms, EUR\/USD faces resistance at 1.1483, the 15 July high, with support at 1.1335, the 24 June low.<\/p>\n\n\n\n