Investing.com - The euro was at one-month highs against the dollar on Wednesday and rose to four-year highs against the yen after data showed that German consumer sentiment rose to a six year high.
EUR/USD rose 0.16% to 1.3594, the highest since October 31 from 1.3570 on Tuesday.
The pair was likely to find support at 1.3515 and resistance at 1.3645.
The forward looking Gfk index of German consumer climate rose to a six year high of 7.4 for December from 7.1 in November. Economists had expected an unchanged reading.
The report said income expectations rose to the highest level since March 2001 and willingness to buy reached a seven-year high.
The euro received an additional boost after German Chancellor Angela Merkel reached a deal to form a coalition government with the Social Democrats on Wednesday, following weeks of negotiations.
Trade volumes remained thin ahead of the U.S. Thanksgiving holiday on Thursday.
Investors were turning their attention to preliminary euro zone inflation data, due out on Friday, amid expectations that the annual rate of inflation would rise to 0.8% in November, from October’s four year low of 0.7%.
Concerns over mounting deflationary pressures in the euro area prompted the European Central Bank to cut interest rates to a record low 0.25% at its November meeting.
EUR/JPY rose 0.68% to 138.38, the highest level since October 2009 from 137.45 on Tuesday.
Elsewhere, the dollar was higher against the yen, with USD/JPY climbing 0.53% to 101.79, just below the six-month high of 101.91 hit on Monday.
The U.S. was to release reports on durable goods orders and manufacturing activity in the Chicago area later Wednesday, as well as the weekly report on initial jobless claims. The Labor Department report was being released one day early due to the U.S. holiday.
EUR/USD rose 0.16% to 1.3594, the highest since October 31 from 1.3570 on Tuesday.
The pair was likely to find support at 1.3515 and resistance at 1.3645.
The forward looking Gfk index of German consumer climate rose to a six year high of 7.4 for December from 7.1 in November. Economists had expected an unchanged reading.
The report said income expectations rose to the highest level since March 2001 and willingness to buy reached a seven-year high.
The euro received an additional boost after German Chancellor Angela Merkel reached a deal to form a coalition government with the Social Democrats on Wednesday, following weeks of negotiations.
Trade volumes remained thin ahead of the U.S. Thanksgiving holiday on Thursday.
Investors were turning their attention to preliminary euro zone inflation data, due out on Friday, amid expectations that the annual rate of inflation would rise to 0.8% in November, from October’s four year low of 0.7%.
Concerns over mounting deflationary pressures in the euro area prompted the European Central Bank to cut interest rates to a record low 0.25% at its November meeting.
EUR/JPY rose 0.68% to 138.38, the highest level since October 2009 from 137.45 on Tuesday.
Elsewhere, the dollar was higher against the yen, with USD/JPY climbing 0.53% to 101.79, just below the six-month high of 101.91 hit on Monday.
The U.S. was to release reports on durable goods orders and manufacturing activity in the Chicago area later Wednesday, as well as the weekly report on initial jobless claims. The Labor Department report was being released one day early due to the U.S. holiday.