Investing.com - The euro pushed higher against the dollar on Wednesday ahead of euro zone data on private sector activity later in the session, but gains were capped amid uncertainty over the possibility of more easing by the European Central Bank.
EUR/USD was last up 0.20% to 1.3833, the highest since April 17.
The pair was likely to find support at 1.3784, Tuesday’s low and resistance at 1.3865.
Sentiment on the euro remained fragile after the ECB warned earlier this month that further gains in the currency would trigger additional monetary easing to keep inflation from falling.
On Tuesday, ECB Executive Board member Benoit Coeure said the bank still had room to lower its key interest rates and added that it was "certain" that appreciation of the euro since mid-2012 had contributed to the low level of current inflation in the euro area.
Market watchers were looking ahead to euro zone data on private sector activity scheduled for release later Wednesday, amid expectations for continued expansion in the region.
The euro was also higher against the yen, with EUR/JPY rising 0.20% to 141.93.
Elsewhere, the dollar was little changed against the yen, with USD/JPY trading at 102.61.
The pair showed little reaction after data released earlier Wednesday showed that the preliminary reading of China’s HSBC manufacturing purchasing managers’ index came in at 48.3 this month, up slightly from a final reading of 48.0 in March, but still below the 50 line separating expansion from contraction.