Investing.com - The euro rose to fresh 23 month highs against the dollar on Thursday as upbeat Chinese manufacturing data boosted risk appetite and expectations that the Federal Reserve will hold off on tapering stimulus until next year weighed on the dollar. EUR/USD hit 1.3822 during late Asian trade, the highest since November 2011; the pair subsequently consolidated at 1.3820, gaining 0.32%. The pair was likely to find support at 1.3740, Wednesday’s low and resistance at 1.3900. The euro moved higher after the preliminary reading of China’s HSBC manufacturing index for October rose to a seven-month high of 50.9, up from a final reading of 50.2 in September. Economists had expected the index to tick up to 50.5. The data offset fears over the Chinese economy, a day after market sentiment was hit by concerns that China’s central bank would tighten monetary policy to help control inflation. The dollar remained under pressure after data earlier in the week showing that U.S. jobs growth slowed in September cemented expectations that the Fed would continue the current pace of its asset purchase program well into next year. Elsewhere, the euro was steady against the pound, with EUR/GBP dipping 0.04% to 0.8520 and was higher against the yen, with EUR/JPY rising 0.37% to 134.66. The euro zone was to release data on manufacturing and service sector activity later in the trading day, while the U.S. was to produce data on initial jobless claims, the trade balance and new home sales.

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