Investing.com - The euro hit session highs against the dollar on Tuesday, as data showing that industrial production in the euro zone rose twice as much as expected in March offset disappointing ZEW data on German economic sentiment.
EUR/USD hit 1.3029 during European morning trade, the pair’s highest since Friday, the pair subsequently consolidated at 1.3020, rising 0.35%.
The pair was likely to find support at 1.2968, the session low and resistance at 1.3050, Friday’s high.
Eurostat said industrial production rose by a seasonally adjusted 1% in March, more than double expectations for a 0.4% increase.
Industrial production was 1.7% lower compared to the same month last year, better than expectations for a 2% decline.
The euro briefly trimmed gains against the dollar after data showed that German economic sentiment improved less-than-expected in May, underlining concerns over the outlook for the region’s largest economy.
The ZEW index of German economic sentiment ticked up to 36.4 from 36.3 in April, well below expectations for a reading of 38.3.
The index of current conditions fell to 8.9 from 9.2 in April, indicating that the German economy could struggle to recover from a 0.5% contraction in the fourth quarter.
The dollar eased against the other major currencies on Tuesday as investors locked in profits ahead of a raft of U.S. economic data later in the week, including reports on industrial production, housing starts, inflation and economic sentiment.
The dollar remained supported amid talk of a possible near-term exit from the Federal Reserve’s asset purchase program after recent U.S. data indicated that the economic outlook is improving.
The euro hit two-week highs against the pound, with EUR/GBP rising 0.23% to 0.8500 and was little changed close to three-year highs against the yen with EUR/JPY dipping 0.05% to 132.03.
Also Tuesday, the Bank of Italy said the country’s government debt hit a a new all-time high of EUR2.03 trillion in March.
EUR/USD hit 1.3029 during European morning trade, the pair’s highest since Friday, the pair subsequently consolidated at 1.3020, rising 0.35%.
The pair was likely to find support at 1.2968, the session low and resistance at 1.3050, Friday’s high.
Eurostat said industrial production rose by a seasonally adjusted 1% in March, more than double expectations for a 0.4% increase.
Industrial production was 1.7% lower compared to the same month last year, better than expectations for a 2% decline.
The euro briefly trimmed gains against the dollar after data showed that German economic sentiment improved less-than-expected in May, underlining concerns over the outlook for the region’s largest economy.
The ZEW index of German economic sentiment ticked up to 36.4 from 36.3 in April, well below expectations for a reading of 38.3.
The index of current conditions fell to 8.9 from 9.2 in April, indicating that the German economy could struggle to recover from a 0.5% contraction in the fourth quarter.
The dollar eased against the other major currencies on Tuesday as investors locked in profits ahead of a raft of U.S. economic data later in the week, including reports on industrial production, housing starts, inflation and economic sentiment.
The dollar remained supported amid talk of a possible near-term exit from the Federal Reserve’s asset purchase program after recent U.S. data indicated that the economic outlook is improving.
The euro hit two-week highs against the pound, with EUR/GBP rising 0.23% to 0.8500 and was little changed close to three-year highs against the yen with EUR/JPY dipping 0.05% to 132.03.
Also Tuesday, the Bank of Italy said the country’s government debt hit a a new all-time high of EUR2.03 trillion in March.