Investing.com - The euro strengthened against the dollar on Wednesday, bolstered by good news on multiple fronts ranging from healthy turnout at a Spanish bond auction to firming German confidence rates.
EUR/USD hit 1.3116 in early Asian trading, up 0.26% after hitting a session high of 1.3120 and above a session low of 1.3076.
The pair was likely to find support at 1.2983, Monday's low, and resistance at 1.3132, Tuesday's high.
While the European Central Bank refuses to step in and buy government bonds directly to alleviate the debt crisis, it has made financing for banks more available via short-term loans, which fueled better-than-expected demand for Spanish debt and pushed yields down.
The Spanish government sold EUR5.6 billion at a note auction, beating a target of EUR4.5 billion, which could lower borrowing costs in the overall economy.
In Germany, meanwhile, business confidence numbers rose in December to 107.2 from 106.6 in November.
The numbers were welcome news in a weary currency market.
"Anything that qualifies as a positive data point in Europe has an outsized positive reaction in global markets," said Jim Russell, regional investment manager for U.S. Bank Wealth Management in Cincinnati, according to Reuters.
In the U.S., meanwhile, housing starts numbers came in much stronger than expected, climbing 9.3%, while building permits soared as well.
The euro was also up against the pound, with EUR/GBP rising 0.14% to hit 0.8364.
In the U.S. on Wednesday, the National Association of Realtors will release existing home sales while in Canada, the government will release retail sales data.
In the U.K., the Bank of England will release minutes of its latest monetary policy meetings, which could shed some light on the economy there, while in Japan, the Bank of Japan is tentatively scheduled to hold a press conference to discuss the health of its economy.
New Zealand will release economic growth figures, which could move currency markets as well.
EUR/USD hit 1.3116 in early Asian trading, up 0.26% after hitting a session high of 1.3120 and above a session low of 1.3076.
The pair was likely to find support at 1.2983, Monday's low, and resistance at 1.3132, Tuesday's high.
While the European Central Bank refuses to step in and buy government bonds directly to alleviate the debt crisis, it has made financing for banks more available via short-term loans, which fueled better-than-expected demand for Spanish debt and pushed yields down.
The Spanish government sold EUR5.6 billion at a note auction, beating a target of EUR4.5 billion, which could lower borrowing costs in the overall economy.
In Germany, meanwhile, business confidence numbers rose in December to 107.2 from 106.6 in November.
The numbers were welcome news in a weary currency market.
"Anything that qualifies as a positive data point in Europe has an outsized positive reaction in global markets," said Jim Russell, regional investment manager for U.S. Bank Wealth Management in Cincinnati, according to Reuters.
In the U.S., meanwhile, housing starts numbers came in much stronger than expected, climbing 9.3%, while building permits soared as well.
The euro was also up against the pound, with EUR/GBP rising 0.14% to hit 0.8364.
In the U.S. on Wednesday, the National Association of Realtors will release existing home sales while in Canada, the government will release retail sales data.
In the U.K., the Bank of England will release minutes of its latest monetary policy meetings, which could shed some light on the economy there, while in Japan, the Bank of Japan is tentatively scheduled to hold a press conference to discuss the health of its economy.
New Zealand will release economic growth figures, which could move currency markets as well.