Investing.com - The euro hit session highs against the U.S. dollar on Tuesday after a report showed that the closely watched ZEW index of German economic sentiment returned to positive territory for the first time since May this month.
EUR/USD hit 1.2976 during European morning trade, the pair’s highest since December 6; the pair subsequently consolidated at 1.2971, gaining 0.24%.
The pair was likely to find support at 1.2928, the session low and resistance at 1.3085, the high of December 6.
The ZEW Centre for Economic Research said that its index of German economic sentiment increased by 22.6 points in December to 6.9, from a reading of minus 15.7 in November. Analysts had expected the index to come in at minus 12.
The euro had firmed up earlier in the session as concerns over political uncertainty in Italy eased after Italian Prime Minister Mario Monti played down fears over an imminent resignation on Monday, saying he was focused on "completing his mandate" before 2013 elections.
Meanwhile, expectations that the Federal Reserve would announce more monetary easing measures at the conclusion of its two-day policy meeting on Wednesday continued to weigh on the dollar.
Investors remained wary as they awaited fresh developments in negotiations to avoid the U.S. fiscal cliff amid concerns that the automatic tax hikes and spending cuts due to take effect in early 2013 could derail the U.S. recovery.
The euro also high session highs against the pound and the yen, with EUR/GBP up 0.21% to 0.8067 and EUR/JPY rising 0.40% to 106.98.
The U.S. was to release official data on the trade balance later in the trading day.
EUR/USD hit 1.2976 during European morning trade, the pair’s highest since December 6; the pair subsequently consolidated at 1.2971, gaining 0.24%.
The pair was likely to find support at 1.2928, the session low and resistance at 1.3085, the high of December 6.
The ZEW Centre for Economic Research said that its index of German economic sentiment increased by 22.6 points in December to 6.9, from a reading of minus 15.7 in November. Analysts had expected the index to come in at minus 12.
The euro had firmed up earlier in the session as concerns over political uncertainty in Italy eased after Italian Prime Minister Mario Monti played down fears over an imminent resignation on Monday, saying he was focused on "completing his mandate" before 2013 elections.
Meanwhile, expectations that the Federal Reserve would announce more monetary easing measures at the conclusion of its two-day policy meeting on Wednesday continued to weigh on the dollar.
Investors remained wary as they awaited fresh developments in negotiations to avoid the U.S. fiscal cliff amid concerns that the automatic tax hikes and spending cuts due to take effect in early 2013 could derail the U.S. recovery.
The euro also high session highs against the pound and the yen, with EUR/GBP up 0.21% to 0.8067 and EUR/JPY rising 0.40% to 106.98.
The U.S. was to release official data on the trade balance later in the trading day.