Investing.com - The euro crept up in early Asian trading on
Tuesday after bargain hunters snapped up nicely priced positions in
the single currency and erased earlier losses stemming from
conflicting German and European indicators.
In Asian trading on Wednesday, EUR/USD was up 0.10% at 1.2933, up
from a session low of 1.2915 and off from a high of 1.3029.
The pair was likely to find support at 1.2747, the low from April
4, and resistance at 1.3194, the high from May 8.
In Europe on Tuesday, the ZEW index of German economic sentiment
rose to 36.4 in May from 36.3 in April, well below expectations for
a reading of 38.3, which put pressure on the single currency.
The index of current conditions fell to 8.9 from 9.2 in April,
which markets interpreted as a sign that the German economy could
face headwinds in its quest to rebound from a 0.5% contraction in
the fourth quarter.
Inflation in Germany, meanwhile, met market forecasts.
The country's consumer price index contracted 0.5 % in April from
March and rose 1.2% from April of last year, both figures in line
Elsewhere, Eurostat, the European Union's statistics office,
reported that industrial production in the euro area rose by 1% in
March from February, more than double expectations for a 0.4%
increase, which offset German sentiment data and allowed for
Also supporting the euro, Spain saw borrowing costs fall to the
lowest level since 2010 at an auction of 12-month government bonds.
Meanwhile in the U.S., the National Federation of Independent
Business reported earlier that its small-business optimism index
rose to 92.1 in April from 89.5 in March, well above market
Analysts were expecting a reading of 89.8.
Also in the U.S. import prices dropped 0.5% in March, meeting
market expectations, while export prices declined 0.7%, according
to the Bureau of Labor Statistics.
The euro, meanwhile, was flat against the pound and down against
the yen, with EUR/GBP trading unchanged at 0.8496, and EUR/JPY
trading down 0.10% at 132.20.
On Wednesday, the eurozone is to release preliminary data on
first-quarter gross domestic product growth.
Germany, France and Italy are to release individual data on
The U.S. is to release data on producer price inflation, industrial
production, the capacity utilization rate and a report on
manufacturing activity in New York State.
offers an extensive set of professional tools for the Forex,
Commodities, Futures and the Stock Market including real-time data
streaming, a comprehensive economic calendar, as well as financial
news and technical & fundamental analysis by in-house experts.
Read more News on Investing.com or Follow us on Twitter at @