The euro moved up against its major counterparts in the European session on Tuesday, following reports that the policymakers of the European Central Bank are likely to discuss raising rates by 50 basis points when they meet this week.

Reuters reported that ECB officials are considering a rate hike of 50 basis points on Thursday, instead of a 25 basis-point move previously suggested by them.

The report added that members are working on a deal to provide assistance to indebted countries like Italy on the bond market, if they adhere to rules on reforms and budget discipline.

German bond yields rose after the report, with the yield on the 10-year German bund reaching 1.25 percent.

Final data from Eurostat showed that Eurozone inflation accelerated to a new record high, as estimated in June, while core inflation eased slightly.

The harmonized index of consumer prices increased 8.6 percent on a yearly basis in June, faster than the 8.1 percent rise in May. The rate came in line with the flash estimate published on July 1.

The euro touched 2-week highs of 141.23 against the yen and 1.0269 against the greenback, up from its early lows of 139.69 and 1.0119, respectively. The euro is seen challenging resistance around 144.00 against the yen and 1.08 against the greenback.

The euro reversed from its prior lows of 0.9898 against the franc and 0.8475 against the pound, rising to an 8-day high of 0.9945 and nearly a 2-week high of 0.8534, respectively. The euro is likely to challenge resistance around 1.04 against the franc and 0.87 against the pound.

The euro appreciated to 1.3288 against the loonie for the first time since July 7. Next key resistance for the currency is likely seen around the 1.34 region.

The single currency rebounded to 1.6484 against the kiwi and 1.4891 against the aussie, off its previous low of 1.6404 and a 5-day low of 1.4803, respectively. The euro is poised to find resistance around 1.68 against the kiwi and 1.52 against the aussie.

Looking ahead, U.S. building permits and housing starts for June are set for release in the New York session.

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