Forex Pros - The euro was up for the first time in three days against the U.S. dollar on Wednesday, jumping to a fresh three-week high amid growing speculation the European Central Bank would raise interest rates to curb inflation.
EUR/USD hit 1.3786 during U.S. morning trade, the pair's highest since February 3; the pair subsequently consolidated at 1.3784, surging 0.97%.
The pair was likely to find support at 1.3524, Tuesday's low and resistance at 1.3824, the high of February 3.
Earlier in the day, official data showed that industrial new orders in the euro zone rose unexpectedly in December, increasing by 2.1% after rising by a revised 2.2% in November.
Analysts had expected industrial new orders to drop by 0.8% in December.
Meanwhile, ECB council member Yves Mersch said on Tuesday that bank officials may toughen their language on inflation when ECB policy members meet next week, indicating a readiness to raise interest rates in coming months.
Fellow ECB board member Nout Wellink highlighted his concern over short-term inflation developments in an interview to the Wall Street Journal on Tuesday, saying he was prepared to consider raising the ECB's benchmark interest rate in the "coming months".
Meanwhile, ECB President Jean-Claude Trichet was to speak at a public engagement in Belgium later in the day.
The euro was also up against the pound, with EUR/GBP climbing 0.31% to hit 0.8485.
Earlier Wednesday, industry data showed that U.S. existing home sales increased more-than-expected in January, rising to an eight-month high.