Investing.com - The euro rose to session highs against the dollar and the yen on Wednesday after data showing that German factory orders rose sharply in September offset concerns over possible rate cuts by the European Central Bank in the coming months.
EUR/USD hit 1.3532 during European late morning trade, the highest since November 1; the pair subsequently consolidated at 1.3520, gaining 0.34%.
The pair was likely to find support at 1.3448, Tuesday’s low and an almost one-and-a-half month low and resistance at 1.3570.
The euro gained ground after a report showed that German factory orders rose 3.3% in September, easily outstripping expectations for a gain of 0.5%.
Factory orders were 7.9% higher in September from a year earlier, blowing past expectations for a 5.9% gain, after rising at a rate of 3.1% in August.
The euro’s gains were held in check after data last week showing that euro zone annual inflation fell to a four year low in October raised concerns that the ECB might cut rates in order to safeguard the economic recovery in the region.
While no policy change was expected from the ECB at its monthly meeting on Thursday many investors expected the bank to signal the possibility of further monetary policy easing at its meeting in December.
Earlier Wednesday, revised data showed that the final reading of the euro zone’s services purchasing managers’ index ticked down to 51.6 in October from 52.2 in September, but was higher than a preliminary estimate of 50.9.
A separate report showed that euro zone retail sales fell 0.6% in September, compared to expectations for a 0.4% decline.
The European Commission cut its forecast for euro zone growth on Tuesday and said that unemployment in the region remains at unacceptably high levels.
The euro hit session highs against the yen, with EUR/JPY up 0.46% to 133.32.
Elsewhere, the shared currency pulled back from five-week lows against the pound, with EUR/GBP edging up 0.01% to 0.8398 after falling as low as 0.8379 earlier.
Sterling was boosted after better-than-forecast data on U.K. manufacturing output added to signs that the U.K. economic recovery is gaining traction.
Manufacturing production in the U.K. rose 1.2% in September, above expectations for a 1.1% increase and was 0.8% higher on a year-over-year basis, beating forecasts for a 0.7% annual gain, data on Wednesday showed.
Industrial production rose 0.9% in September, compared to expectations for a 0.5% increase and was 2.2% higher than in the same month last year.
EUR/USD hit 1.3532 during European late morning trade, the highest since November 1; the pair subsequently consolidated at 1.3520, gaining 0.34%.
The pair was likely to find support at 1.3448, Tuesday’s low and an almost one-and-a-half month low and resistance at 1.3570.
The euro gained ground after a report showed that German factory orders rose 3.3% in September, easily outstripping expectations for a gain of 0.5%.
Factory orders were 7.9% higher in September from a year earlier, blowing past expectations for a 5.9% gain, after rising at a rate of 3.1% in August.
The euro’s gains were held in check after data last week showing that euro zone annual inflation fell to a four year low in October raised concerns that the ECB might cut rates in order to safeguard the economic recovery in the region.
While no policy change was expected from the ECB at its monthly meeting on Thursday many investors expected the bank to signal the possibility of further monetary policy easing at its meeting in December.
Earlier Wednesday, revised data showed that the final reading of the euro zone’s services purchasing managers’ index ticked down to 51.6 in October from 52.2 in September, but was higher than a preliminary estimate of 50.9.
A separate report showed that euro zone retail sales fell 0.6% in September, compared to expectations for a 0.4% decline.
The European Commission cut its forecast for euro zone growth on Tuesday and said that unemployment in the region remains at unacceptably high levels.
The euro hit session highs against the yen, with EUR/JPY up 0.46% to 133.32.
Elsewhere, the shared currency pulled back from five-week lows against the pound, with EUR/GBP edging up 0.01% to 0.8398 after falling as low as 0.8379 earlier.
Sterling was boosted after better-than-forecast data on U.K. manufacturing output added to signs that the U.K. economic recovery is gaining traction.
Manufacturing production in the U.K. rose 1.2% in September, above expectations for a 1.1% increase and was 0.8% higher on a year-over-year basis, beating forecasts for a 0.7% annual gain, data on Wednesday showed.
Industrial production rose 0.9% in September, compared to expectations for a 0.5% increase and was 2.2% higher than in the same month last year.