Investing.com - The euro held gains against the dollar on Tuesday, ahead of U.S. reports on house prices and consumer confidence due out later in the session, amid concerns over the outlook for the economic recovery.
EUR/USD hit session highs of 1.3762, and was last up 0.16% to 1.3756.
The pair was likely to find support at 1.3707 and near-term resistance at 1.3772, the seven-week high struck last Wednesday.
Investors remained cautious after a recent series of disappointing U.S. economic indicators, including reports on jobs growth, retail sales and housing sparked concerns that the economic recovery has lost momentum since the end of last year.
The common currency was boosted after the European Commission revised up its growth forecast for the euro zone to 1.2% this year, up from 1.1% in November.
However, the EC also cut its inflation forecast for 2014 to 1% from 1.5% in November, and warned that debt levels in several countries will continue to climb.
Earlier Tuesday, official data confirmed that Germany’s economy grew 0.4% in the fourth quarter and expanded 1.3% on a year-over-year basis, as strong overseas demand bolstered exports.
The euro was slightly lower against the yen, with EUR/JPY dipping 0.10% to 140.67.
Demand for the safe haven yen continued to be underpinned as China’s yuan fell sharply on Tuesday, amid speculation that the country’s central bank had intervened to add volatility to the currency ahead of possible reforms.
The euro was also lower against the pound, with EUR/GBP down 0.19% to 0.8232.
Sterling was boosted after data from the British Bankers Association showed that mortgage approvals rose 57% January from a year earlier, hitting a 76-month high.
A separate report by the Confederation of British Industry said U.K. retail sales rose at the fastest rate since June 2013 in February.