Investing.com - The euro trimmed gains against the U.S. dollar on Friday, following the release of disappointing U.S. consumer sentiment data, although an earlier announcement by European Union leaders continued to support.
EUR/USD pulled away from 1.3107, the pair's highest since March 8, to hit 1.3049 during U.S. morning trade, still up 0.35%.
The pair was likely to find support at 1.2924, the low of March 13 and resistance at 1.3134, the high of March 8.
In a preliminary report, the University of Michigan said its index of consumer sentiment dropped to 71.8 in March from a reading of 77.6 the previous month, compared to expectations for a rise to 78.0.
Earlier in the day, official data showed that U.S. industrial production rose 0.7% in February, beating expectations for a 0.4% increase, after a 0.1% fall the previous month.
In addition, the Empire State manufacturing index fell less-than-expected in March, ticking down to 9.2 from a reading of 10 the previous month. Analysts had expected the index to decline to 8.4 this month.
A separate report showed that core consumer price inflation, which excluded food and energy, rose 0.2% in February after a 0.3% increase the previous month, in line with expectations.
Consumer price inflation rose 0.7% last month, more than the expected 0.5% increase, following a flat reading in January.
But the euro remained supported after EU leaders endorsed “structural” budgetary assessments, granting countries such as France, Spain and Portugal extra time to bring down deficits.
Speaking at a meeting in Brussels, EU officials said balanced budgets remained the goal however, and there was no talk of large-scale spending programs or bond issues.
Meanwhile, EU and International Monetary Fund officials continued to work on a package for Cyprus, with hopes of presenting the outline of a bailout programme to euro zone finance experts later in the day.
The euro was also higher against the pound with EUR/GBP adding 0.13%, to hit 0.8635.
Also Friday, official data showed that consumer price inflation in the euro zone remained unchanged at an annualized rated of 1.8% in February, in line with expectations.
Core consumer price inflation, which excludes food, energy, alcohol, and tobacco, also remained unchanged in the single currency bloc last month at 1.3%, as expected.
EUR/USD pulled away from 1.3107, the pair's highest since March 8, to hit 1.3049 during U.S. morning trade, still up 0.35%.
The pair was likely to find support at 1.2924, the low of March 13 and resistance at 1.3134, the high of March 8.
In a preliminary report, the University of Michigan said its index of consumer sentiment dropped to 71.8 in March from a reading of 77.6 the previous month, compared to expectations for a rise to 78.0.
Earlier in the day, official data showed that U.S. industrial production rose 0.7% in February, beating expectations for a 0.4% increase, after a 0.1% fall the previous month.
In addition, the Empire State manufacturing index fell less-than-expected in March, ticking down to 9.2 from a reading of 10 the previous month. Analysts had expected the index to decline to 8.4 this month.
A separate report showed that core consumer price inflation, which excluded food and energy, rose 0.2% in February after a 0.3% increase the previous month, in line with expectations.
Consumer price inflation rose 0.7% last month, more than the expected 0.5% increase, following a flat reading in January.
But the euro remained supported after EU leaders endorsed “structural” budgetary assessments, granting countries such as France, Spain and Portugal extra time to bring down deficits.
Speaking at a meeting in Brussels, EU officials said balanced budgets remained the goal however, and there was no talk of large-scale spending programs or bond issues.
Meanwhile, EU and International Monetary Fund officials continued to work on a package for Cyprus, with hopes of presenting the outline of a bailout programme to euro zone finance experts later in the day.
The euro was also higher against the pound with EUR/GBP adding 0.13%, to hit 0.8635.
Also Friday, official data showed that consumer price inflation in the euro zone remained unchanged at an annualized rated of 1.8% in February, in line with expectations.
Core consumer price inflation, which excludes food, energy, alcohol, and tobacco, also remained unchanged in the single currency bloc last month at 1.3%, as expected.