Forex Today: Dollar pressured amid Sino-American optimism, coronavirus headlines, data eyed

Here is what you need to know on Tuesday, August 25:

The market mood is upbeat following upbeat tones from Chinese and American trade negotiators with the safe-haven dollar under pressure. The fall in US coronavirus cases and optimism about a vaccine also help. Consumer confidence is on the agenda.

Sino-American relations: US Trade Representative Robert Lighthizer and Chinese Vice Premier Liu He held a phone call and said that progress was being made and more was to come. Moreover, the Republican convention kicked off on Monday without bashing China, another positive development. 

Coronavirus: The US reported fewer than 35,000 cases on Monday, the lowest in two months. The downtrend is infections have been extending while mortalities remain elevated. More importantly for markets, optimism about a cure or vaccine remains high.

Coronavirus hopes: Pfizer announced it may ask for approval for its COVID-19 immunization candidate as early as October and Moderna reported progress. Over the weekend, Trump pushed for plasma treatment.

The market moves: The upbeat market mood pushed the S&P 500 to new record highs and reversed the dollar's limited gains. Gold is stabilizing above $1,930 after slipping from higher levels on Monday.

EUR/USD is trading above 1.18.ahead of the German IFO Business Climate figures for August. Falls in purchasing managers' indexers imply a drop in IFO's forward-looking index as well.

GBP/USD is trading around 1.31, struggling after another round of inconclusive Brexit talks. The CB Realized Sales statistic is due out.

The Conference Board's US Consumer Confidence figure is set to remain stable in August, close to July's 92.6 level. Several housing figures are on the radar as well, including New Home Sales and the S&P/ Case Shiller Composite House Price Index.

Tension is mounting ahead of a speech by Jerome Powell, Chairman of the Federal Reserve. Some speculate he may change the way the bank targets inflation, allowing it to heat up more than beforehand. That may weigh on the dollar.

WTI Oil is trading above $42 as storms in the Caribbean are causing the shuttering of oil refineries and production facilities in the Gulf. 

Cryptocurrencies are stable with Bitcoin trading just under $11,700 and Ethereum around $400.