Investing.com - The euro traded sharply higher against the U.S. dollar Friday as German business confidence rocketed to a 9 month high and words from the International Monetary Fund that it expects more contributions to increase the size of its sovereign bailout fund.
EUR/USD rocketed to a high of 1.3205 and hit a low of 1.3129 prior to trading at 1.3190 up 0.40%
The pair was likely to find support at 1.2996, Monday’s low and a two-month low and resistance at 1.205, the session high.
The single currency rally was fueled as German ifo business climate surprised economists climbing to 109.9 from 109.8 the previous month.
Economists expected a drop to 109.5.
Germany is the euro zone’s largest economy therefore German economic improvements are a major supporter of the single currency.
Meanwhile, the IMF is meeting with Group of 20 officials, on the heels of IMF director Christine Lagarde saying Thursday, she expects more contributions in her campaign for a larger bailout fund.
The euro traded slightly higher against the pound with EUR/GBP adding 0.02% to hit 0.8186 and soared against the yen climbing 0.53% to 107.77
Pushing the yen lower, Bank of Japan Governor Masaaki Shirakawa stated that the nation still needs monetary stimulus during a speech in Washington.