Forex

Investing.com – The euro edged higher against the weaker dollar on Wednesday, after economic data out of the euro zone on Tuesday indicated that the currency bloc’s economy is showing signs of recovery.

EUR/USD hit 1.3316 during late Asian trade, the session high; the pair subsequently consolidated at 1.3308, edging up 0.02%.

The pair was likely to find support at 1.3245, Tuesday’s low and resistance at 1.3343, the high of July 31 and a six-week high.

Official data released Tuesday showed that German factory orders jumped 3.8% in June, compared to expectations for a gain of 1%.

A separate report showed that Italy’s economy contracted by a smaller than forecast 0.2% in the second quarter, indicating that the euro zone’s third largest economy is stabilizing.

Meanwhile, the International Monetary Fund revised up its growth forecast for Germany to 1.4% in 2014, from 1.3% previously and maintained its growth forecast for this year at 0.3% in its annual report on the country.

The dollar remained under pressure amid ongoing uncertainty over when the Federal Reserve will start to taper its asset purchase program.

The euro was little changed against the pound, with EUR/GBP inching up 0.01% to 0.8670 and was lower against the stronger yen, with EUR/JPY down 0.66% to 129.21.

Investors were awaiting the Bank of England’s quarterly inflation report later in the trading day, while central bank Governor Mark Carney was to also present the findings of a review on providing markets with forward guidance on interest rates.

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