Forexpros – The euro rose to a daily high against the pound on Thursday, after a report showed that German business confidence improved unexpectedly in November but gains were capped amid ongoing concerns over the region’s debt crisis.
EUR/GBP hit 0.8618 during European morning trade, the daily high; the pair subsequently consolidated at 0.8615, gaining 0.25%.
The pair was likely to find support at 0.8549, the low of November 21 and resistance at 0.8647, Wednesday’s high.
The euro found support after German research institute Ifo said its Business Climate Index rose to a seasonally adjusted 106.6 in November from 106.4 in October.
Analysts had expected the index to fall to 105.5.
The data indicated that the euro zone’s largest economy is coping with the region’s debt crisis better than experts had feared.
Sentiment on the single currency soured on Wednesday after the least successful German bond sale since the launch of the single currency sparked concerns over contagion to core euro zone economies.
In the U.K., revised data showed that gross domestic product expanded by 0.5% in the third quarter and was up 0.5% on the year, in line with initial estimates earlier this month and with economists’ forecasts.
The euro was also higher against the U.S. dollar, with EUR/USD rising 0.25% to hit 1.3376.
Meanwhile, U.S. markets were to remain closed on Thursday for Thanksgiving.
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