Investing.com - The euro edged higher against the U.S. dollar on Friday, helped by the release of upbeat German consumer climate data, although Thursday's U.S. jobless claims report continued to support demand for the greenback.
EUR/USD hit 1.2665 during late Asian trade, the session high; the pair subsequently consolidated at 1.2660, adding 0.11%.
The pair was likely to find support at 1.2582, the low of October 7 and resistance at 1.2740, the high of October 22.
Sentiment on the euro improved after data showed that the Gfk German consumer climate index rose to 8.5 in October from 8.4 in September, whose figure was revised up from a previously estimated reading of 8.3.
Analysts had expected the index to fall to 8.0 this month.
The single currency had also found support on Thursday after data showed that the euro zone saw a marginal uptick in business activity in October.
Research group Markit said its preliminary euro zone manufacturing purchasing managers’ index ticked up to 50.7 this month from a final reading of 50.3 in September. The region’s services PMI held steady at 52.4, slightly above expectations of 52.0.
Meanwhile, the dollar remained supported after a report on Thursday showed that U.S. initial jobless claims rose last week, but the underlying trend indicated improving labor market conditions.
The Department of Labor said the number of Americans filing for initial jobless benefits in the week ending October 18 increased by 17,000 to 283,000, broadly in line with forecasts.
However, the four-week average fell to 281,000, the lowest since May 2000, while continuing claims, which counts people receiving benefit for at least the second month in a row, also hit a 14-year low, of 2.35 million.
The euro was fractionally higher against the pound, with EUR/GBP easing up 0.08% to 0.7895.
Later in the day, the U.S. was to produce a report on new home sales.