Forex - EUR/USD higher on German words, upbeat U.S. data

Forex - EUR/USD higher on German words, upbeat U.S. data ForexprosArticle Forexpros - The euro traded higher against the U.S. dollar Tuesday, as upbeat U.S. economic data and bullish commentary from Germany's finance minister helped lift single currency sentiment but ongoing Spanish woes kept gains in check. EUR/USD pulled away from 1.2888 the pair's lowest since September 13, to hit 1.2943 during U.S. afternoon trade, climbing 0.10%. The pair was likely to find support at 1.2853, the low of September 13 and near-term resistance at 1.2989, Monday's high. Single currency sentiment was lifted following comments by German Finance Minister Wolfgang Schauble, who said European policymakers should do everything in their power to protect the single currency, adding that defending the euro was "worth any effort". Risk appetite found support after a report by the Conference Board said that its U.S. consumer confidence index rose to a seven-month high of 70.3 this month, compared to expectations for a reading of 63.0. A separate report by Standard & Poor’s and Case-Shiller showed that house price inflation rose more-than-expected in July from a year earlier. The S&P/CS House Price Index rose to a seasonally adjusted annual rate of 1.2% in July, the biggest 12-month advance since August 2010, compared to expectations for a 1.0% increase. The euro weakened against the greenback earlier after German media reports that lawyers for the German central bank are examining the legality of the European Central Bank's bond purchasing program, setting the stage for a possible legal challenge. Meanwhile, Spain saw borrowing costs rise at an auction of short-term debt on Tuesday, reflecting lingering uncertainty over whether Madrid will request a full scale sovereign bailout. The euro was fractionally higher against the broadly stronger pound, with EUR/GBP inching up 0.04% to 0.7975 and gained ground against the yen, with EUR/JPY rising 0.19% to 100.85. In other news Tuesday, ECB President Mario Draghi said the debt crisis in the euro zone is not over and urged governments to continue to take decisive measures to ensure the future of the bloc.