Investing.com - The euro pushed higher against the U.S. dollar on Tuesday, after data showed that German economic sentiment improved for a second successive month in December, easing concerns over a slowdown in the euro zone's largest economy.
EUR/USD hit 1.2526 during European late morning trade, the pair's highest since November 26; the pair subsequently consolidated at 1.2495, advancing 0.47%.
The pair was likely to find support at 1.2382, the low of Dcember 12 and resistance at 1.2571, the high of November 21.
In a report, the ZEW Centre for Economic Research said that its index of German economic sentiment jumped to 34.9 from 11.5 in November. It was the highest reading since May 2014 and easily outstripped forecasts of 20.8.
The current conditions index rose to 10.0 from 3.3 in November, compared to expectations of 5.7.
The data came shortly after 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.
In Germany, 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.
Markit also reported that France's manufacturing PMI fell to 47.9 this month from a final reading of 48.4 in November, while 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 steady against the pound, with EUR/GBP inching up 0.04% to 0.7956.
In the U.K., the Office for National Statistics said the annual rate of consumer price inflation slowed to 1.0% last month from 1.3% in November. It was the lowest rate of inflation since September 2002 and was below forecasts of 1.2%.
Later in the day, the U.S. was to publish reports on building permits and housing starts.