RTTNews - The euro has seen mild strength against the other major currencies on Friday, as encouraging German business climate data has raised hopes that the biggest Eurozone economy is on the road to recovery. The common currency edged higher within near-term trading ranges against the dollar and yen, remaining near multi-week highs.

The Munich-based Ifo Institute for Economic Research said its business climate indicator for Germany rose to 87.3 in July from 85.9 in June. This was the fourth consecutive month of growth and lifted the index above expectations for a reading of 86.5.

The euro edged higher against the dollar amid choppy trading and moved near $1.4215 in the early afternoon. The pair has been range-bound throughout the week near the euro's seven-week high of $1.4290.

A Reuters and the University of Michigan report showed that the U.S. consumer sentiment index for July came in at 66.0 compared to the preliminary reading of 64.6, although it remains below a reading of 70.8 for June. Economists had expected the index to be revised up to 65.0.

The euro was also a little higher against the Japanese yen, moving near 134.70 yen. The pair has seen little change after the euro slipped off a three-week high of 135.62 yen earlier in the week.

Japan's all industry activity index rose 0.7% month-on-month in May, after rising 2.6% in April, a report from the Ministry of Economy, Trade and Industry said. Economists were looking for an increase of 0.9%. The gauge moved up for the second month in a row.

The common currency also joined other currencies in rising versus the British pound after a government report showed that the U.K. economy contracted more than expected in the second quarter.

The euro rose as high as 0.8674 against the British pound. If the European currency can get above 0.8698, it will reach a seven-week high.

The U.K. Office for National Statistics reported that gross domestic product declined 0.8% quarter-on-quarter in the second quarter after falling 2.4% in the first three months of the year. Economists were looking for a 0.3% contraction.

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