Forex - Euro hits 1-month high vs. dollar and 4-year high vs. yen

The euro edged up to one month highs against the dollar on Wednesday and hit four year highs against the yen in thin trading conditions ahead of the U.S. Thanksgiving holiday on Thursday.

EUR/USD inched up 0.06% to 1.3580, the highest since October 31 from 1.3570 on Tuesday.

The pair was likely to find support at 1.3515 and resistance at 1.3645.

The release of mixed U.S. economic data did little to shift expectations that the Federal Reserve will start to taper its stimulus program at one of its next few meetings.

Data released on Tuesday showed that U.S. consumer confidence unexpectedly fell to seven month low in November, but a separate report showed that the number of building permits issued in the U.S. rose to the highest level in five years in October.

Investors were turning their attention to preliminary euro zone inflation data, due out on Friday, amid expectations that the annual rate of inflation would rise to 0.8% in November, from October’s four year low of 0.7%.

Concerns over mounting deflationary pressures in the euro area prompted the European Central Bank to cut interest rates to a record low 0.25% at its November meeting.

EUR/JPY rose 0.33% to 137.91, the highest level since October 2009 from 137.45 on Tuesday.

Elsewhere, the dollar regained ground against the yen, with USD/JPYclimbing 0.31% to 101.57, holding below the six-month high of 101.91 hit on Monday.

The U.S. was to release reports on durable goods orders and manufacturing activity in the Chicago area later Wednesday, as well as the weekly report on initial jobless claims. The Labor Department report was being released one day early due to the U.S. holiday.