• Data from Germany showed improvement in business confidence in May.
• EUR/USD continues to push higher during the European session.

The monthly survey conducted by Germany's Ifo Institute showed on Monday that the Business Climate Index improved to 93 in May from 91.9 in April, surpassing the market expectation of 91.4.

Additionally, the Current Assessment Index rose to 99.5 from 97.3 and the Expectations Index edged higher to 86.9 from 86.8.

Commenting on the data, Ifo economist Klaus Wohlrabe noted that there were no signs of a recession in Germany at the moment and added that the German economy was resilient.

On a concerning note, "demand for industrial products has dropped off significantly," Wohlrabe said. "There are no signs of supply bottlenecks easing in the industry; retail is also battling supply problems."

Market reaction

EUR/USD preserves its bullish momentum after this data and trades at its highest level since early May at 1.0633, rising 0.7% on the day.