Investing.com - The euro edged higher against the U.S. dollar on Tuesday, supported by strong German business climate data, although gains were capped by expectations for further stimulus by the European Central Bank and for a U.S. rate hike before the year-end.
EUR/USD hit 1.0670 during European morning trade, the session high; the pair subsequently consolidated at 1.0646, easing up 0.08%.
The pair was likely to find support at 1.0591, Monday's low and a seven-month low and resistance at 1.0744, Friday's high.
The euro found some support after the German research institute Ifo said its Business Climate Index rose to a 17-month high of 109.0 this month from a reading of 108.2 in October, beating forecasts for 108.2.
But gains were held in check since European Central Bank President Mario Draghi said on Friday that the bank is ready to act quickly to boost inflation in the euro zone and can also change the level of its deposit rate to boost the impact of quantitative easing.
Meanwhile, the dollar remained broadly supported by expectations that the Federal Reserve is on track to raise interest rates next month.
New York Fed President William Dudley said Friday that there is a "strong case" for hiking rates at the central bank’s next meeting in December as long as economic data continues to remain solid.
The euro was also higher against the pound, with EUR/GBP rising 0.20% to 0.7035.