Investing.com - The euro firmed against the dollar on Wednesday after a report released earlier revealed German businesses continue to grow more confident in today's business environment.
In U.S. trading on Wednesday, EUR/USD was trading up 0.12% at 1.3245, up from a session low of 1.3223, and off from a high of 1.3308.
The pair was likely to find support at 1.3144, Monday's low, and resistance at 1.3308, the earlier high.
In Europe, the Ifo economic institute's German business climate index came hit 102.4 for December, up from 101.4 in November and beating market forecasts for a 102.0 reading.
The data sent the single currency gaining against the safe-haven greenback as investors took on risk.
Hopes the White House and Congress can avoid the year-end fiscal cliff, a combo of tax hikes and spending cuts taking effect at the same time, also sparked demand for risk.
Sticking points have been found in taxes, with Democrats originally calling for tax hikes on those earning at least USD250,000 a year, with Republicans originally opposed to tax hikes for anyone.
Both sides have made concessions, with Republicans warming up to tax hikes on the wealthy by offering to raise rates on those earning a minimum USD1 million a year, with Democrats reportedly countering by raising the floor to USD400,000 from USD250,000.
While the White House and congressional Republicans have yet to make a deal, President Barak Obama said earlier he hoped a compromise would be reached by the U.S. Christmas holidays, which sent the dollar falling as investors sold it for riskier but more rewarding asset classes.
Elsewhere in the U.S., government data revealed that building permits increased 3.6% in November to a seasonally adjusted annual rate of 899,000 units, the highest since July 2008.
Analysts were predicting a gain of 0.8% to 0.875 million.
U.S. housing starts, however, fell by 3% in November to a seasonally adjusted annual rate of 861,000, missing expectations for a figure of 873,000 though markets still viewed the figure as evidence the sector continues to improve.
The euro, meanwhile, was up against the pound and up against the yen, with EUR/GBP trading up 0.03% at 0.8142, and EUR/JPY trading up 0.41% at 111.84.
In U.S. trading on Wednesday, EUR/USD was trading up 0.12% at 1.3245, up from a session low of 1.3223, and off from a high of 1.3308.
The pair was likely to find support at 1.3144, Monday's low, and resistance at 1.3308, the earlier high.
In Europe, the Ifo economic institute's German business climate index came hit 102.4 for December, up from 101.4 in November and beating market forecasts for a 102.0 reading.
The data sent the single currency gaining against the safe-haven greenback as investors took on risk.
Hopes the White House and Congress can avoid the year-end fiscal cliff, a combo of tax hikes and spending cuts taking effect at the same time, also sparked demand for risk.
Sticking points have been found in taxes, with Democrats originally calling for tax hikes on those earning at least USD250,000 a year, with Republicans originally opposed to tax hikes for anyone.
Both sides have made concessions, with Republicans warming up to tax hikes on the wealthy by offering to raise rates on those earning a minimum USD1 million a year, with Democrats reportedly countering by raising the floor to USD400,000 from USD250,000.
While the White House and congressional Republicans have yet to make a deal, President Barak Obama said earlier he hoped a compromise would be reached by the U.S. Christmas holidays, which sent the dollar falling as investors sold it for riskier but more rewarding asset classes.
Elsewhere in the U.S., government data revealed that building permits increased 3.6% in November to a seasonally adjusted annual rate of 899,000 units, the highest since July 2008.
Analysts were predicting a gain of 0.8% to 0.875 million.
U.S. housing starts, however, fell by 3% in November to a seasonally adjusted annual rate of 861,000, missing expectations for a figure of 873,000 though markets still viewed the figure as evidence the sector continues to improve.
The euro, meanwhile, was up against the pound and up against the yen, with EUR/GBP trading up 0.03% at 0.8142, and EUR/JPY trading up 0.41% at 111.84.