German Ifo seen weakening

EUR/USD rose 0.2% to 1.1083, rebounding after slumping to a two-week low of 1.1059 earlier in the session after Monday’s weak eurozone business activity data for July.

The widely watched German Ifo business climate index is due later in the session and is expected to show a weakening in confidence in the eurozone’s most important economy.

That said, the European Central Bank is still set to increase interest rates by a further 25 basis points when it meets on Thursday.