Investing.com - The euro advanced against the U.S. dollar Tuesday as yields fell at auction and German investor confidence soared.
EUR/USD hit a low of 1.2650 during U.S. trade. The pair is off a high of 1.2807 and is currently trading at 1.2729 up 0.49%.
The pair was likely to find support at 1.2625, Monday's low and technical resistance exists at 1.2844, the high of January 12th.
The single currency gained strength as the German ZEW investor confidence index surged the most on record. The numbers jumped from minus 21.6 to minus 53.8 in December, the largest gain since the index began in December, 1991.
Another report indicated that consumer price inflation in the euro zone climbed less than expected in December, advancing 2.7% after a 2.8% rise in November, providing the European Central Bank more room to ease monetary policy.
Dropping yields bolstered the euro as Spain auctioned EUR4.9 billion of short term government debt at sharply lower yields.
Brian Kim of Royal Bank explained to Bloomberg, "We've had decent auction results in the last couple of weeks. There's a lot of funding needs in Europe, so it does give a little boost of confidence."
The euro advanced against the pound with EUR/GBP adding 0.39% to 0.8297.
In addition, an index of manufacturing conditions in New York gained more than expected in January, advancing to the highest level since April.
Investors are awaiting U.S. data on producer price inflation on Wednesday.
EUR/USD hit a low of 1.2650 during U.S. trade. The pair is off a high of 1.2807 and is currently trading at 1.2729 up 0.49%.
The pair was likely to find support at 1.2625, Monday's low and technical resistance exists at 1.2844, the high of January 12th.
The single currency gained strength as the German ZEW investor confidence index surged the most on record. The numbers jumped from minus 21.6 to minus 53.8 in December, the largest gain since the index began in December, 1991.
Another report indicated that consumer price inflation in the euro zone climbed less than expected in December, advancing 2.7% after a 2.8% rise in November, providing the European Central Bank more room to ease monetary policy.
Dropping yields bolstered the euro as Spain auctioned EUR4.9 billion of short term government debt at sharply lower yields.
Brian Kim of Royal Bank explained to Bloomberg, "We've had decent auction results in the last couple of weeks. There's a lot of funding needs in Europe, so it does give a little boost of confidence."
The euro advanced against the pound with EUR/GBP adding 0.39% to 0.8297.
In addition, an index of manufacturing conditions in New York gained more than expected in January, advancing to the highest level since April.
Investors are awaiting U.S. data on producer price inflation on Wednesday.