The euro rose sharply due to strong economic growth in Germany

The euro rose sharply to a two and a half weeks high against the dollar on Tuesday and is set to record its biggest one-day percentage gain in more than four months, with data released earlier showing that Germany's economy accelerated in the third quarter.

The euro rose 1.11% against the dollar at 1.1794 U.S. dollars, the highest single-day percentage gain since June 27.

"The key driver of the euro's gains was the strong German economic data released earlier in the morning," said Eric Viloria, currency strategist at Wells Fargo Securities.

Seasonally adjusted, Germany's gross domestic product (GDP) for the third quarter rose 0.8% from the previous quarter and Reuters survey is forecast to increase 0.6%.

 

ZEW said investors' confidence improved in November, the economic outlook remained "encouraging and positive", and the economic outlook for Europe's largest economy showed more positive signs.

Data released on Tuesday showed that strong economic growth in Germany helped the Eurozone economy to grow by 2.5% in the third quarter from the same period a year earlier, more than the United States.