EUR USD analysis: Ifo data sends euro to fresh 5-month high

ForexNewsNow | Published on September 24, 2010 at 10:01 am

EUR USD analysis - a pile of eurosNEW YORK (Forex News Now) – The euro jumped against the dollar on Friday, hitting a fresh 5-month high, after the Ifo think tank’s closely-followed gauge of German business morale posted an unexpected rise.

In late U.S. currency market trading, EUR/USD struck 1.3492, its highest since April 20. The currency pair later retreated slightly to trade at 1.3475, up 1.21 percent on the day.

Ifo said earlier that its German Business Climate index climbed to 106.8 in September, its highest since June 2007, confounding expectations of a drop to 106.3. The data helped quell mounting fears over the strength of the euro zone’s recovery.

According to EUR USD analysis, EUR/USD was likely to touch support around Wednesday’s low, 1.3248, and encounter resistance around the high of April 20, 1.3523.

The euro’s gains also came after official data showed that there were fewer sales of new U.S. homes than expected in August.

Elsewhere, the euro surged versus the yen: EUR/JPY traded at 113.64, down 1.15 percent, according to intraday analysis.

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