Investing.com - The euro erased gains against the U.S. dollar on Friday, dropping to two-and-a-half week lows as Wednesday's comments by Federal Reserve Chairman Ben Bernanke continued to support broad demand for the greenback.
EUR/USD pulled away from 1.3254, the session high, to hit 1.3170 during U.S. morning trade, declining 0.40%.
The pair was likely to find support at 1.3075, the low of June 6 and resistance at 1.3254, the session high.
Fed Chairman Ben Bernanke said the bank could begin slowing asset purchases by the end of 2013 and wind them down completely by the middle of 2014 if the economy picks up as the central bank expects.
Adding to signs of a strong U.S. economic recovery, the Federal Reserve Bank of Philadelphia on Thursday said that its manufacturing index rose to 12.5 in June from minus 5.2 in May, outstripping expectations for a reading of minus 2.0 and rising at the fastest pace since April 2011.
A separate report showed that U.S. existing home sales climbed 4.2% to a seasonally adjusted 5.18 million units in May from April’s total of 4.97 million, and well above expectations for a 0.6% increase.
In the euro zone, the European Central Bank earlier said its current account surplus narrowed to EUR19.5 billion in April, from a surplus of EUR25.9 billion, confounding expectations for the surplus to narrow to EUR14.2 billion.
The euro was higher against the pound with EUR/GBP adding 0.15%, to hit 0.8536.
Also Friday, official data showed that U.K. public sector net borrowing rose less-than-expected in May, rising by GBP10.5 billion, after a GBP6.6 billion increase the previous month.
Analysts had expected public sector net borrowing to rise by GBP13.8 billion last month.
EUR/USD pulled away from 1.3254, the session high, to hit 1.3170 during U.S. morning trade, declining 0.40%.
The pair was likely to find support at 1.3075, the low of June 6 and resistance at 1.3254, the session high.
Fed Chairman Ben Bernanke said the bank could begin slowing asset purchases by the end of 2013 and wind them down completely by the middle of 2014 if the economy picks up as the central bank expects.
Adding to signs of a strong U.S. economic recovery, the Federal Reserve Bank of Philadelphia on Thursday said that its manufacturing index rose to 12.5 in June from minus 5.2 in May, outstripping expectations for a reading of minus 2.0 and rising at the fastest pace since April 2011.
A separate report showed that U.S. existing home sales climbed 4.2% to a seasonally adjusted 5.18 million units in May from April’s total of 4.97 million, and well above expectations for a 0.6% increase.
In the euro zone, the European Central Bank earlier said its current account surplus narrowed to EUR19.5 billion in April, from a surplus of EUR25.9 billion, confounding expectations for the surplus to narrow to EUR14.2 billion.
The euro was higher against the pound with EUR/GBP adding 0.15%, to hit 0.8536.
Also Friday, official data showed that U.K. public sector net borrowing rose less-than-expected in May, rising by GBP10.5 billion, after a GBP6.6 billion increase the previous month.
Analysts had expected public sector net borrowing to rise by GBP13.8 billion last month.