Investing.com - The euro pushed higher against the U.S. dollar on Tuesday, after data showed that German economic sentiment improved to the highest level in 13 months in March, although a report on inflation in the euro zone tended to limit the single currency's gains.
EUR/USD hit 1.0615 during European morning trade, the session high; the pair subsequently consolidated at 1.0606, gaining 0.36%.
The pair was likely to find support at 1.0456, Monday's low and a 12-year low and resistance at 1.0717, the high of March 11.
In a report, the ZEW Centre for Economic Research said that its index of German economic sentiment rose by 1.8 points to 54.8 this month from February’s reading of 53.0. Analysts had expected the index to improve by 5.2 points to 58.2 in March.
The index of euro zone economic sentiment increased to a 13-month high of 62.4 in March from 52.7 in February, above forecasts for a gain to 58.2.
A separate report showed that euro zone consumer price inflation fell 0.3% last month, in line with expectations and unchanged from a preliminary estimate. Euro zone inflation declined by 0.6% in January.
The rate remains firmly below the European Central Bank's target of near but just below 2%.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose 0.7% in February, up from an initial estimate of 0.6%.
Meanwhile, market participants were eyeing Wednesday’s Federal Reserve statement to see if it would drop its reference to being patient before raising rates and signal that it is ready to hike rates depending on economic data.
The euro was also higher against the pound, with EUR/GBP climbing 0.66% to 0.7172.
Later in the day, the U.S. was to report on building permits and housing starts.