Forex - EUR/USD pushes higher on strong Ifo report

The euro pushed higher against the U.S. dollar on Friday, after the release of positive German business climate data, although indications the Federal Reserve could begin tapering its stimulus program in the coming months still supported the greenback. 

EUR/USD hit 1.3527 during European morning trade, the pair's highest since Wednesday; the pair subsequently consolidated at 1.3515, gaining 0.26%. 

The pair was likely to find support at 1.3359, the low of November 12 and resistance at 1.3632, the high of October 4. 

In a report, the Ifo Institute for Economic Research said Germany's business climate index rose to a 19-month high of 109.3 in November, from a reading of 107.4 the previous month. Analysts had expected the index to rise to 107.7 this month. 

The data conforted the idea that Germany's economic recovery is gaining momentum, after data on Thursday showed that manufacturing activity in the euro zone's biggest economy rose to a 29 month peak this month. 

The single currency also remained supported after European Central Bank President Mario Draghi downplayed speculation that the bank was actively considering whether to cut deposit rates into negative territory. 

Meanwhile, demand for the dollar remained supported after preliminary data on Thursday showed that U.S. manufacturing activity improved to an eight-month high of 54.3 in November, while a separate report showed that jobless claims last week fell by 21,000 to a seasonally adjusted 323,000. 

The minutes of the Fed's October meeting showed earlier in the week that the central bank could start scaling back the USD85 billion-a-month asset purchase program in the “coming months” if the economy continues to improve as expected. 

The euro was also higher against the pound with EUR/GBP rising 0.26%, to hit 0.8343.