Investing.com - The euro edged higher against the U.S. dollar on Wednesday, pulling away from a four-month low, buoyed by hopes that Greece will remain on the euro zone and after the release of upbeat U.S. economic data.
EUR/USD pulled back from 1.2682, the pair’s lowest since January 17, to hit 1.2751 during U.S. morning trade, gaining 0.16%.
The pair was likely to find support at 1.2682, the session low and a four-month low and resistance at 1.2868, Tuesday’s high.
The euro found support after German Chancellor Angela Merkel indicated that the German government was willing to give more economic support to Greece to help the country remain in the euro zone.
This sentiment was echoed by European Central Bank President Mario Draghi, who said that the central bank would strongly prefer Greece to remain in the currency bloc.
Earlier in the day, Greek political leaders appointed a caretaker government headed by supreme court judge Panagiotis Pikrammenos to lead the country to fresh elections, which are due to be held on June 17.
In the U.S., official data showed that new housing starts rose unexpectedly in April, climbing 2.6% to a seasonally adjusted 0.717 million, confounding expectations for a decline to 0.680 million.
The number of building permits issued in the U.S. in April fell 7.0%, more than expectations for a decline of 4.5%.
A separate report showed that industrial production in the U.S. rose significantly more-than-expected in April, climbing 1.1%, but March’s figure was revised down to a 0.6% drop from a previously reported flat reading.
The euro was also higher against the pound and the yen, with EUR/GBP rising 0.52% to hit 0.8000 and EUR/JPY adding 0.43% to hit 102.50.
Also Wednesday, official data showed that consumer price inflation in the euro zone held steady at 2.6% in April, unchanged from a preliminary estimate. Month-on-month, CPI rose 0.5%, in line with expectations, after rising by 1.3% in March.
EUR/USD pulled back from 1.2682, the pair’s lowest since January 17, to hit 1.2751 during U.S. morning trade, gaining 0.16%.
The pair was likely to find support at 1.2682, the session low and a four-month low and resistance at 1.2868, Tuesday’s high.
The euro found support after German Chancellor Angela Merkel indicated that the German government was willing to give more economic support to Greece to help the country remain in the euro zone.
This sentiment was echoed by European Central Bank President Mario Draghi, who said that the central bank would strongly prefer Greece to remain in the currency bloc.
Earlier in the day, Greek political leaders appointed a caretaker government headed by supreme court judge Panagiotis Pikrammenos to lead the country to fresh elections, which are due to be held on June 17.
In the U.S., official data showed that new housing starts rose unexpectedly in April, climbing 2.6% to a seasonally adjusted 0.717 million, confounding expectations for a decline to 0.680 million.
The number of building permits issued in the U.S. in April fell 7.0%, more than expectations for a decline of 4.5%.
A separate report showed that industrial production in the U.S. rose significantly more-than-expected in April, climbing 1.1%, but March’s figure was revised down to a 0.6% drop from a previously reported flat reading.
The euro was also higher against the pound and the yen, with EUR/GBP rising 0.52% to hit 0.8000 and EUR/JPY adding 0.43% to hit 102.50.
Also Wednesday, official data showed that consumer price inflation in the euro zone held steady at 2.6% in April, unchanged from a preliminary estimate. Month-on-month, CPI rose 0.5%, in line with expectations, after rising by 1.3% in March.