The euro showed mixed trading on Thursday following the release of a closely watched business confidence survey results from Germany, the biggest economy in Europe.
Confidence among German businesses rose for a third consecutive month in July, signaling that the prospects of a recovery in Eurozone's largest economy remained brighter than that of the rest of the single currency bloc, results of a key survey revealed today.
The Ifo Institute said its business climate index rose to 106.2 in July from 105.9 in June. Economists had expected an increase to 106.1. "Conditions in the German economy remain fair," the Munich-based think-tank said in the survey report.
Assessments of the current business situation were more positive than last month as evidenced by an increase in the Ifo current conditions index to 110.1 in July from 109.4 in June. This was expected to rise modestly to 109.7.
Meanwhile, the European Union has decided to hold back the next slice of bailout payment for Greece until Monday as it awaits the Parliament to complete the procedures to adopt one last fiscal mandate necessary to avail the aid. The troika had asked Greece to fulfill 22 financial mandates to receive the aid, out of which 21 were successfully fulfilled by Greece.
The U.K. economy expanded at a faster pace as expected in the second quarter on a widespread support from production, construction and services.
The increase in gross domestic product doubled to 0.6 percent from 0.3 percent in the first quarter, preliminary estimate published by the Office for National Statistics showed today. The growth rate matched expectations.
As expected, GDP was 1.4 percent higher in the second quarter compared with a year ago.
The euro climbed to a weekly high of 0.8641 against the pound in early deals, rebounding from this week's key support around the 0.8580 level. The euro-sterling currency cross has failed to break the 50 and 100-day simple moving average levels in its recent corrective swing suggests further bullishness in the pair, with 0.8650/60 visible as the probable near-term resistance.
The common currency climbed to a session's high of 1.3237 against the US dollar around 7:40 am ET, a fair reversal from a 2-day low of 1.3165 hit a couple of hours before. The euro-dollar pair is poised to challenge the 1.3237 level in the near-term, its pre-IFO peak.
The single currency tested yesterday's lows against the Swiss franc, falling as much as 1.2357 around 7:55 am ET. The next likely support for the euro-franc pair is seen around the 1.2340/50 area.
The euro also fell as much as 131.46 against the yen, just a few pips short of Wednesday's low of 131.38. The overall technical picture shows euro bullish as the currency cross is swinging back and forth, heading towards a major resistance of 133.80.
Traders now look forward to the North American session, at which the U.S. durable goods orders report for June and the weekly jobless claims for the weekended July 20 are slated for release.
