Investing.com - The euro was higher against the softer dollar on Thursday as uncertainty over when the Federal Reserve will start tapering stimulus weighed on the dollar, while better-than-expected growth data boosted the euro.
EUR/USD hit 1.3310 during late Asian trade, the highest since Tuesday; the pair subsequently consolidated at 1.3291, rising 0.27%.
The pair was likely to find support at 1.3238, Wednesday’s low and resistance at 1.3343, the high of August 12.
Sentiment on the dollar was hit after data on Wednesday showed that U.S. producer price inflation was flat in July, while core inflation rose less-than-forecast.
The disappointing data raised fresh doubts over whether the economic recovery is strong enough for the Fed to begin unwinding its USD85 billion-a-month asset purchase program later this year.
The euro remained supported one day after data showed that the euro zone economy returned to growth in the second quarter, emerging from an 18-month recession.
The euro zone economy expanded 0.3% in the three months to June, the fastest quarterly expansion since the first quarter of 2011.
France’s economy expanded 0.5%, following two consecutive quarters of contraction, while Germany’s economy expanded by a larger than expected 0.7%.
Elsewhere, the euro was slightly higher against the pound, with EUR/GBP easing up 0.08% to 0.8556 and was lower against the yen, with EUR/JPY slipping 0.16% to 129.86.
The U.S. was to release a series of economic data later in the trading day, with reports on consumer inflation, jobless claims, industrial production and manufacturing data from the Empire state and the Philly Fed.
EUR/USD hit 1.3310 during late Asian trade, the highest since Tuesday; the pair subsequently consolidated at 1.3291, rising 0.27%.
The pair was likely to find support at 1.3238, Wednesday’s low and resistance at 1.3343, the high of August 12.
Sentiment on the dollar was hit after data on Wednesday showed that U.S. producer price inflation was flat in July, while core inflation rose less-than-forecast.
The disappointing data raised fresh doubts over whether the economic recovery is strong enough for the Fed to begin unwinding its USD85 billion-a-month asset purchase program later this year.
The euro remained supported one day after data showed that the euro zone economy returned to growth in the second quarter, emerging from an 18-month recession.
The euro zone economy expanded 0.3% in the three months to June, the fastest quarterly expansion since the first quarter of 2011.
France’s economy expanded 0.5%, following two consecutive quarters of contraction, while Germany’s economy expanded by a larger than expected 0.7%.
Elsewhere, the euro was slightly higher against the pound, with EUR/GBP easing up 0.08% to 0.8556 and was lower against the yen, with EUR/JPY slipping 0.16% to 129.86.
The U.S. was to release a series of economic data later in the trading day, with reports on consumer inflation, jobless claims, industrial production and manufacturing data from the Empire state and the Philly Fed.