EUR/USD carved its way higher

The euro edged higher against the US dollar on Wednesday, as recent economic reports out of the Euro zone implied that the blocs economy showed signs of revitalization.

EUR/USD reached its highest point during todays trade at 1.3314, after which consolidation followed at 1.3306. Support was expected at August 6th low, 1.3245, while resistance was to be encountered at July 31st high and a six-week high, 1.3343.

On Tuesday it became clear that Germanys factory orders rose by 3.8% in June on a monthly basis, significantly exceeding forecasts of 1.0% rise, while in May the indicator’s value was revised up to a smaller drop, by 0.5% from a 1.3% drop previously. In June orders registered the largest climb in eight months. In annual terms, factory orders rose by 4.3% in the month of June, which also considerably outstripped estimates of 0.3% increase.

Additionally, it was reported that Italys economy contracted at a slower pace than expected during the second quarter of the year. The preliminary value of countrys Gross Domestic Product shrank by 2.0%, while initial estimates pointed a 2.2% drop. On a quarterly basis, Italian GDP also contracted by a lesser rate during the second quarter compared to projections, by 0.2% instead of 0.4%.

Another boost for the single currency came after the IMF revised up its growth forecast for Germany to 1.4% during 2014, from 1.3% previously, while maintaining its growth forecast for 2013 at 0.3% in its annual report.

Meanwhile, the greenback was pressured, as uncertainty over the future of Federal Reserves monthly asset purchases was still present.

Elsewhere, the euro was slightly higher against the British pound, as EUR/GBP cross added 0.07% to trade at 0.8676 at 7:16 GMT. On the other hand, EUR/JPY pair tumbled 0.90%, trading at 128.90 at 7:17 GMT.

Later in the trading day Germany was expected to release information, regarding the index of industrial production. Estimates pointed that it increased by 0.3% during June on a monthly basis, after the 1.0% drop a month ago.