Investing.com - The euro rose to two-week highs against the U.S. dollar on Tuesday, supported by the release of positive manufacturing and service sector data from the euro zone, as investors still eyed an additional report on German economic sentiment due later in the day.
EUR/USD hit 1.2497 during European morning trade, the pair's highest since December 1; the pair subsequently consolidated at 1.2492, climbing 0.45%.
The pair was likely to find support at 1.2382, the low of December 12 and resistance at 1.2571, the high of November 21.
In a report, research group Markit said its preliminary euro zone manufacturing purchasing managers' index rose to a four-month high of 50.8 in December from 50.1 in November, exceeding expectations for a rise to 50.5.
The preliminary reading of the bloc's services PMI rose to 51.9 this month from 51.1 in November, compared to expectations for an increase to 51.5.
Germay's preliminary manufacturing PMI rose to a two-month high of 51.2 this month from a final reading of 49.5 in November. Analysts had expected the index to tick up to 50.4.
However, the preliminary reading of the German services PMI slid to a 17-month low of 51.4 from a final reading of 52.1 last month, compared to expectations for an increase to 52.6.
In France, the manufacturing PMI fell to 47.9 this month from a final reading of 48.4 in November. Analysts had expected the index to tick up to 48.6.
The preliminary reading of the French services PMI improved to four-month high of 49.8 from a final reading of 47.9 last month, and ahead of expectations for 48.3.
Meanwhile, investors remained cautious ahead of Wednesday's Federal Reserve policy statement, as ongoing speculation over the prospects for a U.S. rate hike next year fuelled expectations that the U.S. central bank could adjust its forward guidance.
The euro was higher against the pound, with EUR/GBP adding 0.24% to 0.7973.
Later in the day, the U.S. was to publish reports on building permits and housing starts.