EUR/USD trims intraday gains; holds above 1.1800 as German IFO survey fails to inspire

• EUR/USD gains positive traction for the second straight day, though it lacks follow-through.
• Renewed trade uncertainties weigh on the USD and act as a tailwind for the currency pair.
• The German IFO business survey for February does little to provide any impetus to the Euro.

The EUR/USD pair trims a part of its intraday gains, though it manages to hold above the 1.1800 mark through the first half of the European session on Monday and moves little following the release of the IFO institute's business survey for February.

The headline IFO – Business Climate Index edged higher to 88.6 in February from 87.6 in the previous month, while the Current Assessment Index came in at 86.7 for the current month, compared with 85.7 previously. The data, however, fails to influence the shared currency amid the uncertainty over European Central Bank (ECB) President Christine Lagarde’s tenure and renewed trade-war fears.

In fact, US President Donald Trump imposed a new global levy of 15% following a Supreme Court verdict on Friday against his sweeping reciprocal tariffs. In response, the European Parliament’s trade chief stated that the European Union (EU) will propose freezing the ratification process of the trade deal with the US until they’ve received details from the Trump administration on its trade policy.

Meanwhile, the latest developments reignite the so-called "Sell America" trade, which, along with bets for at least two more 25 basis points (bps) rate cuts by the US Federal Reserve (Fed), weighs heavily on the US Dollar (USD). This, in turn, continues to act as a tailwind for the EUR/USD pair, though the lack of any follow-through buying warrants some caution before positioning for further gains.