Investing.com

Investing.com - The euro rose to two-and-a-half week highs against the U.S. dollar on Wednesday, as weak U.S. economic reports dented demand for the greenback, while an upbeat report on German consumer climate lent some support to the single currency.



EUR/USD hit 1.3652 during U.S. morning trade, the pair''s highest since June 9; the pair subsequently consolidated at 1.3638, rising 0.24%.



The pair was likely to find support at 1.3583, Tuesday''s low and resistance at 1.3677, the high of June 6.



The dollar came under pressure after the Commerce Department said gross domestic product contracted at an annual rate of 2.9% in the first three months of the year, compared to the consensus forecast for a decline of 1.7%.



U.S. first quarter GDP was initially reported to have increased by 0.1%, but was subsequently revised to show a contraction of 1.0%.



The difference between the second and third estimate was the largest since records began in 1976, the Commerce Department said.



The data showed personal consumption grew 1.0% in the three months to March, below expectations for a 2.4% increase and down from an initial estimate of 3.5%. Consumer spending typically accounts for nearly 70% of U.S. economic growth.



A separate report showed that U.S. durable goods orders fell 1.0% in May, while core durable goods orders fell 0.1%. Market expectations had been for an increase of 0.2% and 0.4%, respectively.



Earlier Wednesday, market research group Gfk earlier said that its German consumer climate index rose to a seven-and-a-half year high of 8.9 in June, from 8.6 in May, whose figure was revised up from a previously estimated reading of 8.5. Analysts had expected the index to tick down to 8.5 this month.



But the euro''s gains were held in check after data on Tuesday showed that German business confidence deteriorated this month, amid concerns about the impact of crises in Iraq and Ukraine.



The euro was also higher against the pound, with EUR/GBP adding 0.18% to 0.8025.





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