Investing.com - The euro gained ground against the U.S. dollar on the heels of a successful Spanish bill auction and rising German business confidence.
EUR/USD hit a high of 1.3132 during early U.S. trade. It is currently trading at 1.3081 higher by 0.62% on the session.
The pair was likely to find support at 1.3055 and technical resistance exists at 1.3106.
The single currency climbed to a weekly high on a German business confidence index posting an increase to 107.2 this month as compared to a reading of 106.6 in November, beating economist's estimates
In addition, Spain sold EUR5.64 billion at their note auction beating the Treasuries maximum target of EUR4.5 billion, increasing the chances of an easing in borrowing costs.
U.S. housing data was also surprisingly positive with housing starts up 9.3% and building permits hitting a yearly high.
Thomas Molloy, chief dealer at FX Solutions explained to Bloomberg, in part, "The European data was more important and more relevant to the euro's performance than the U.S. data. Expectations and hopes are building that the European Central Bank may be successful in its backdoor attempts at quantitative easing…"
The Euro was lower against the pound with EUR/GBP dropping 0.40% to hit 0.8354.
Investors are awaiting U.S. home sales data, crude oil inventories and the Treasury currency report.
EUR/USD hit a high of 1.3132 during early U.S. trade. It is currently trading at 1.3081 higher by 0.62% on the session.
The pair was likely to find support at 1.3055 and technical resistance exists at 1.3106.
The single currency climbed to a weekly high on a German business confidence index posting an increase to 107.2 this month as compared to a reading of 106.6 in November, beating economist's estimates
In addition, Spain sold EUR5.64 billion at their note auction beating the Treasuries maximum target of EUR4.5 billion, increasing the chances of an easing in borrowing costs.
U.S. housing data was also surprisingly positive with housing starts up 9.3% and building permits hitting a yearly high.
Thomas Molloy, chief dealer at FX Solutions explained to Bloomberg, in part, "The European data was more important and more relevant to the euro's performance than the U.S. data. Expectations and hopes are building that the European Central Bank may be successful in its backdoor attempts at quantitative easing…"
The Euro was lower against the pound with EUR/GBP dropping 0.40% to hit 0.8354.
Investors are awaiting U.S. home sales data, crude oil inventories and the Treasury currency report.