Forex - EUR/USD slightly higher ahead of U.S. data

The euro was slightly higher against the dollar on Thursday as upbeat euro zone data buoyed the single currency and investors’ attention turned to U.S. data due for release later in the trading day.

EUR/USD hit 1.3237 during European afternoon trade, the session high; the pair subsequently consolidated at 1.3212, gaining 0.09%.

The pair was likely to find support at 1.3133, the low of July 22 and resistance at 1.3255, Wednesday’s high and a five-week high.

The euro briefly touched session highs against the dollar after data showed that the Ifo index of German business climate ticked up to 106.2 in July from 105.9 In June, better than expectations for a reading of 106.1.

Market participants were looking ahead to U.S. reports on initial jobless claims and durable goods orders later in the day for indications on when the Federal Reserve might start to unwind its asset purchase program.

The euro was also higher against the pound, with EUR/GBP rising 0.24% to 0.8638.

Sentiment on sterling remained lackluster after official data showed that growth in the U.K. economy accelerated in line with expectations in the second quarter.

The Office of National Statistics said the U.K. economy expanded by 1.4% on a year-over-year basis in the second quarter, in line with expectations. The U.K. economy grew by 0.3% year-on-year in the first quarter.

The U.K. economy expanded 0.6% quarter on quarter, after a 0.3% expansion in the first quarter. 

Elsewhere, the euro was lower against the yen, with EUR/JPY down 0.42% to 131.80.