The EUR/USD pair is posting marginal gains ahead of the US Session opening on Tuesday as the US Dollar retreats further with trade uncertainty growing. Meanwhile, a rather positive Lending survey from the European Central Bank (ECB), released earlier on the day, has provided additional support to the common currency.

The Euro (EUR) has turned positive on the daily chart and returned above the 1.1700 level. The pair remains above Friday's high, at 1.1675, and also above the top of a bearish channel from July 1 highs, which suggests that further appreciation is likely.

​​The ECB's survey indicates that trade tensions did not impact credit standards, and mortgage and corporate credit demand rose in the second quarter, with expectations of further increases over the next three months. These figures come after another upbeat report on access to finance released on Monday.

These reports are contributing to underpin the Euro near 10-day highs, yet with upside attempts limited on Tuesday as investors' appetite for risks remains weak, with trade uncertainty weighing on sentiment as the August 1 tariff deadline approaches without significant progress in the negotiations.

EU and US representatives keep negotiating in an attempt to reach a deal, but hopes of a successful outcome diminish by the day. Recent comments from the European side reflect that confidence in a deal is waning and the bloc is exploring retaliatory measures. Some countries are considering wide-ranging anti-coercion measures targeting US services as a response to the hefty unilateral levies announced by US President Donald Trump.

Later on the day, Federal Reserve's (Fed ) Chairman Jerome Powell's speech in Washington will grab some attention. The Fed chair is not expected to comment on monetary policy as the Fed is within its blackout period ahead of the interest-rate decision on July 30, but his reaction to the unprecedented pressures from the US administration might have some impact on the market.

Source: Fxstreet