Investing.com - The euro edged higher against the dollar on Thursday after escalating tensions between Russia and Ukraine offset positive U.S. data on demand for long-lasting consumer products and weakened the greenback.
In U.S. trading, EUR/USD was up 0.09% at 1.3829, up from a session low of 1.3792 and off a high of 1.3843.
The pair was likely to find support at 1.3785, Tuesday''s low, and resistance at 1.3855, Wednesday''s high.
Ukraine military forces killed five separatists earlier, while Russian President Vladimir Putin warned Kiev against stepping up its offensive against the rebels.
Geopolitical tensions eclipsed overall positive U.S. data and sent investors chasing safe-haven yen positions, while markets took dovish comments from European Central Bank President Mario Draghi in stride.
The Commerce Department reported earlier that U.S. orders for durable goods rose 2.6% in March, beating expectations for a 2% gain.
Core durable goods orders, which exclude volatile transportation items, rose 2% last month, far outpacing forecasts for a 0.6% gain.
Separately, the Labor Department said the number of individuals who filed for unemployment assistance in the U.S. in the week ending April 19 rose by 24,000 to 329,000. Analysts had expected an increase of 5,000.
Despite the increase, underlying trends still point to recovery in the labor market, giving investors room to shrug off the data.
Meanwhile in Europe, ECB President Mario Draghi reiterated his stance that a strengthening euro could trigger further monetary easing, which capped the euro''s gains.
Speaking at a conference in Amsterdam, Draghi said the euro exchange rate is an "increasingly important factor" in monetary policy. The exchange rate is not a policy target in itself, but the bank’s monetary policy stance could be affected by a continued appreciation in the currency, Draghi added.
He also said the ECB could launch a "broad-based" asset purchase program if the medium-term inflation outlook deteriorated.
Elsewhere in Europe, German research institute Ifo reported that its business climate index rose to a two-month high of 111.2 for April from 110.7 in March, beating expectations for a 110.5 reading.
The euro was down against the pound, with EUR/GBP down 0.02% to 0.8232, and down against the yen, with EUR/JPY down 0.09% at 141.55.
On Friday, the U.S. is to round up the week with revised data on consumer sentiment.
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