Investing.com - The euro pushed higher against the dollar on Wednesday supported by increases in euro zone bond yields and upbeat euro zone data, while the dollar slipped lower ahead of U.S. economic reports later in the day.
EUR/USD rose 0.37% to 1.1253, still below the two-month high of 1.1391set last Thursday.
The single currency remained supported following a fresh selloff in global bond markets on Tuesday. German 10-year bund yields surged, narrowing the gap with their U.S. counterparts.
German bund yields act as benchmarks for European financial markets and higher yields push the euro higher against the dollar. Yields rise as prices fall.
The single currency also received a boost after data showed that the French economy grew 0.6% in the first quarter, the fastest rate of growth in two years.
The euro zone was to release data on first quarter growth later Wednesday.
The dollar weakened against the other major currencies ahead of U.S. data on retail sales later in the day, after recent economic reports pointed to weakness in first quarter growth.
USD/JPY was steady at 119.89, while USD/CHF was down 0.36% to 0.9259.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.27% to 94.45, holding above last week’s two-month trough of 93.96.