Investing.com - The euro rose to an almost three-month high against the U.S. dollar on Friday, after better-than-expected U.S. manufacturing and industrial production data, while U.S. budget talks were set to continue later in the day.
EUR/USD hit 1.3139 during U.S. morning trade, the pair's highest since September 17; the pair subsequently consolidated at 1.3137, climbing 0.46%.
The pair was likely to find support at 1.3067, the session low and resistance at 1.3171, the high of September 17.
In a preliminary report, Markit research group said that the U.S. manufacturing purchasing managers' index climbed to 54.2 in December from a reading of 52.80 the previous month, beating expectations for a decline to 52.6.
A separate report showed that U.S. industrial production rose far more-than-expected in November, climbing by 1.1% after a 0.7% fall the previous month. Analysts had expected industrial production to rise 0.3% in November.
The data came after the U.S. Bureau of Labor Statistics said consumer price inflation fell 0.3% in November, more than the expected 0.2% decline, after a 0.1% rise the previous month.
Core consumer price inflation, which excludes food and energy, rose 0.1% last month, disappointing expectations for a 0.2% rise, following a 0.2% increase in October.
In the euro zone, the manufacturing PMI improved less-than-expected in December, ticking up to 47.3 from a reading of 46.2 the previous month. Analysts had expected the index to improve to 46.6 in December.
The euro zone's services PMI rose to 47.8 this month from 46.7 in November, beating expectations for a rise to 47.0.
Separately, Markit said that Germany's manufacturing PMI slipped to 46.3 in December from 46.8 the previous month. Analysts had expected the index to improve to 47.2.
Germany's services PMI climbed to 52.1 this month from a reading of 49.7 in November, beating expectations for a rise to 50.0.
Sentiment also remained supported after euro zone finance ministers agreed on Thursday to immediately disburse EUR34.4 billion in bailout funds for Greece. The announcement came one day after a long-awaited deal on rules for supervising euro zone banks was concluded.
Elsewhere, the euro was higher against the pound with EUR/GBP rising 0.26%, to hit 0.8137.
Also Friday, investors remained focused on 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.
EUR/USD hit 1.3139 during U.S. morning trade, the pair's highest since September 17; the pair subsequently consolidated at 1.3137, climbing 0.46%.
The pair was likely to find support at 1.3067, the session low and resistance at 1.3171, the high of September 17.
In a preliminary report, Markit research group said that the U.S. manufacturing purchasing managers' index climbed to 54.2 in December from a reading of 52.80 the previous month, beating expectations for a decline to 52.6.
A separate report showed that U.S. industrial production rose far more-than-expected in November, climbing by 1.1% after a 0.7% fall the previous month. Analysts had expected industrial production to rise 0.3% in November.
The data came after the U.S. Bureau of Labor Statistics said consumer price inflation fell 0.3% in November, more than the expected 0.2% decline, after a 0.1% rise the previous month.
Core consumer price inflation, which excludes food and energy, rose 0.1% last month, disappointing expectations for a 0.2% rise, following a 0.2% increase in October.
In the euro zone, the manufacturing PMI improved less-than-expected in December, ticking up to 47.3 from a reading of 46.2 the previous month. Analysts had expected the index to improve to 46.6 in December.
The euro zone's services PMI rose to 47.8 this month from 46.7 in November, beating expectations for a rise to 47.0.
Separately, Markit said that Germany's manufacturing PMI slipped to 46.3 in December from 46.8 the previous month. Analysts had expected the index to improve to 47.2.
Germany's services PMI climbed to 52.1 this month from a reading of 49.7 in November, beating expectations for a rise to 50.0.
Sentiment also remained supported after euro zone finance ministers agreed on Thursday to immediately disburse EUR34.4 billion in bailout funds for Greece. The announcement came one day after a long-awaited deal on rules for supervising euro zone banks was concluded.
Elsewhere, the euro was higher against the pound with EUR/GBP rising 0.26%, to hit 0.8137.
Also Friday, investors remained focused on 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.