Forex - Euro pushes higher vs. dollar

The euro edged higher against the dollar on Thursday as investors locked in gains following the dollar’s gains in the previous session on the back of strong U.S. housing data.

EUR/USD hit 1.3220 during late Asian trade, the session high; the pair subsequently consolidated at 1.3209, easing up 0.08%.

The pair was likely to find support at 1.3162, Tuesday’s low and resistance at 1.3255, Wednesday’s high and a five-week high.

The dollar gained ground against the other major currencies on Wednesday after official data showed that U.S. new home sales jumped to a five-year high in June, boosting expectations that the Federal Reserve will start to scale back its bond buying program later this year.

The Commerce Department said U.S. new home sales jumped 8.3% to a seasonally adjusted annual rate of 497,000 units, the highest level since May 2008.

The euro remained supported after data on Wednesday showed that the euro zone’s composite output purchasing managers’ index rose to its highest level in 18 months in July.

The data fuelled optimism that the bloc’s economy could emerge from a recession in the third quarter.

The euro was lower against the pound and the yen, with EUR/GBPsliding 0.12% to 0.8607 and EUR/JPY down 0.29% to 131.96.

The Ifo Institute was to release its report on German business climate later in the trading day, while the U.S. was to produce data on initial jobless claims and durable goods orders.