Investing.com - The euro was trading close to session highs against the dollar on Wednesday after data showing an unexpected drop in U.S. durable goods orders raised concerns over the outlook for first quarter growth.
EUR/USD was last at 1.0978, 0.49% higher for the day, not far from session highs of 1.0994.
The dollar came under pressure after the Commerce Department reported that orders for long lasting manufactured goods fell 1.4% last month, compared to expectations for a gain of 0.4%.
Core durable goods orders, which exclude transportation items, slipped 0.4%, against forecasts for a 0.3% gain.
Orders for core capital goods, a key barometer of private-sector business investment fell 1.4%, the sixth consecutively monthly decline.
Business spending has likely been hit by the stronger greenback, while lower energy prices have also acted as a drag.
The dollar has come under pressure since the Federal Reserve indicated last week that it may raise interest rates more gradually than markets had expected.
The euro remained supported after data earlier on Wednesday showing German business confidence improved this month boosted the outlook for the euro area’s largest economy.
The Ifo Institute said its business climate index rose to 107.9 this month, up from 106.8 in February. Economists expected a reading of 107.3.
"Strong growth in the fourth quarter of 2014, combined with low energy prices and the weak euro exchange rate have boosted confidence in the economy," said Ifo economist Carsten Brzeski.
The weaker euro and lower oil prices are giving German firms a lift the report said, while the decline in the euro exchange rate also gave exporters more confidence about future prospects.
Elsewhere, the dollar was lower against the yen, with USD/JPY sliding 0.17% to 119.54, not far from Tuesday’s three-week lows of 119.21.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down to 97.20.