European focus: unexpected Ifo growth supported euro. [E]

The euro rose to a record against the yen and showed a three-day high versus the dollar after issued data showed German business confidence reached its strongest since 1991 this month.
The currency also advanced earlier as ECB council member Nicholas Garganas joined ECB officials signaling possible interest rates move up on 50 b.p. in the euro region in a light of monetary policy tightening.
It's hawkish talk and they boosting EUR,'' said Derek Halpenny, Bank of Tokyo- Mitsubishi UFJ Ltd. ECB is not fixed on a gradual lift and may also go faster."
ECB council member Yves Mersch said in an interview published yesterday that the bank never said "we can only act every three months and by 25 basis points.''
The euro advantages versus the dollar may be limited before the Fed's June 29 meeting.
Market players are vigilance while bolstering EUR with bids ahead FOMC meeting.'' said Paul Robson, Royal Bank of Scotland Group Plc. That's negating the positives from slightly more hawkish ECB comments and undoubtedly very strong EU data.''
The Ifo index unexpectedly rose to 106.8, beating the median economists forecast of a drop to 105.
A similar survey of sentiment in Italy rose to its highest in 5,5 years, and a Belgian confidence index released four days ago unexpectedly jumped to a record.