EUR/USD on session highs

The euro rose to session highs against the US dollar on Tuesday, following the revised up forecast for 2014 growth in Germany by the International Monetary Fund (IMF).

EUR/USD touched 1.3316 at 14:24 GMT, the session high and the pairs highest point since July 31st. Support was likely to be received at current session low, 1.3245, while resistance was to be met at July 31st high, 1.3343.

It became clear that 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.

Additionally, earlier today an official report said that German factory orders rose by 3.8% in June on a monthly basis, significantly exceeding forecasts of 1.0% rise, while in May the indicators value was revised up to a smaller drop, by 0.5% from a 1.3% drop previously. Annually, factory orders rose by 4.3% in the month of June, which also considerably outstripped estimates of 0.3% increase.

The preliminary value of Italys Gross Domestic Product showed that economy shrank at a lesser rate in Q2 2013 compared to Q2 2012, by 2.0%, in comparison with initial estimates, which 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%.

Meanwhile, the Commerce Department of the United States reported that countrys trade deficit decreased by 22.4% in June to 34.22 billion USD. Experts had expected a lesser drop in the deficit figure, to 43.500 billion USD, while in May deficit was revised up to 44.100 billion USD from 45.027 billion USD previously.

Elsewhere, the euro was trading higher against the British pound, as EUR/GBP cross added 0.27% to 0.8659 at 14:56 GMT.