Investing.com - The euro rose to session highs against the dollar and the yen on Tuesday after a report showed that the closely watched ZEW index of German economic sentiment rose to the highest level since April 2010 in September.
EUR/USD hit 1.3368 during European morning trade, the session high; the pair subsequently consolidated at 1.3364, gaining 0.22%.
The pair was likely to find support at 1.3300 and near-term resistance at 1.3384, Monday’s high and a three-week high.
The ZEW Centre for Economic Research said that its index of German economic sentiment rose to 49.6 in September from 42.0 last month, on the back of the improved economic outlook for the euro zone.
Analysts had forecast a reading of 46.0.
The ZEW index of euro zone economic sentiment jumped to 58.6 in September, the highest reading since September 2009 and up from 44.0 in August.
EUR/JPY was up 0.30% to 132.49, the highest since Friday, following the report.
Investors remained cautious ahead of the outcome of the Federal Reserve’s two-day policy meeting on Wednesday, amid expectations for a small reduction in the bank’s stimulus program.
The dollar weakened broadly on Monday after former U.S. Treasury Secretary Lawrence Summers withdrew from the contest to succeed Ben Bernanke as the next chairman of the U.S. central bank.
Summers’ was perceived as being likely to unwind economic stimulus measures more aggressively than the other main contender for the post, Janet Yellen.
Elsewhere, the single currency hit session highs against the pound, with EUR/GBP gaining 0.24% to trade at 0.8406.
In the U.K., data released on Tuesday showed that consumer price inflation ticked down to 2.7% on a year-over-year basis in August from 2.8% in July, in line with economists’ forecasts.
Core CPI remained unchanged at 2% last month, compared to expectations for an uptick to 2.1%.
Consumer prices rose by 0.4% on the month in August, compared to expectations for a 0.5% increase.
The U.S. was to release data on consumer prices later in the trading day.
EUR/USD hit 1.3368 during European morning trade, the session high; the pair subsequently consolidated at 1.3364, gaining 0.22%.
The pair was likely to find support at 1.3300 and near-term resistance at 1.3384, Monday’s high and a three-week high.
The ZEW Centre for Economic Research said that its index of German economic sentiment rose to 49.6 in September from 42.0 last month, on the back of the improved economic outlook for the euro zone.
Analysts had forecast a reading of 46.0.
The ZEW index of euro zone economic sentiment jumped to 58.6 in September, the highest reading since September 2009 and up from 44.0 in August.
EUR/JPY was up 0.30% to 132.49, the highest since Friday, following the report.
Investors remained cautious ahead of the outcome of the Federal Reserve’s two-day policy meeting on Wednesday, amid expectations for a small reduction in the bank’s stimulus program.
The dollar weakened broadly on Monday after former U.S. Treasury Secretary Lawrence Summers withdrew from the contest to succeed Ben Bernanke as the next chairman of the U.S. central bank.
Summers’ was perceived as being likely to unwind economic stimulus measures more aggressively than the other main contender for the post, Janet Yellen.
Elsewhere, the single currency hit session highs against the pound, with EUR/GBP gaining 0.24% to trade at 0.8406.
In the U.K., data released on Tuesday showed that consumer price inflation ticked down to 2.7% on a year-over-year basis in August from 2.8% in July, in line with economists’ forecasts.
Core CPI remained unchanged at 2% last month, compared to expectations for an uptick to 2.1%.
Consumer prices rose by 0.4% on the month in August, compared to expectations for a 0.5% increase.
The U.S. was to release data on consumer prices later in the trading day.