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Forex - EUR/USD trims gains after mixed U.S. economic reports

Published 04/26/2013, 10:14 AM
Updated 04/26/2013, 10:15 AM
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Investing.com - The euro trimmed gains against the U.S. dollar on Friday, pulling away from session highs, although the release of mixed U.S. economic reports weighed on demand for the greenback.

EUR/USD pulled away from 1.3048, the session high, to hit 1.3015 during U.S. morning trade, still up 0.03%.

The pair was likely to find support at 1.2956, the low of April 24 and resistance at 1.3094, Thursday's high.

Final data showed that the University of Michigan's consumer sentiment index rose to 76.4 in April, from a reading of 72.3 the previous month, beating expectations for an increase to 73.2.

The data came after the Bureau of Economic Analysis said, in a preliminary report, that U.S. gross domestic product rose 2.5% in the first quarter, less than the expected 3.0% increase, after a 0.4% rise in the previous quarter.

Meanwhile, the euro remained under pressure amid speculation over a possible rate cut by the European Central Bank after Goldman Sachs on Thursday said it now expects the ECB to cut rates by 0.25% at next week's policy meeting.

The investment bank also revised down its euro zone growth forecast for 2013 to minus 0.7% from minus 0.5% previously.

Markets were also eyeing a series of new growth measures to be unveiled by the Spanish government, a day after official data showed that the unemployment rate ticked up to 27.2% in the first quarter, from 26.0% in the previous quarter, compared to expectations for a rise to 26.5%.

The euro was lower against the pound with EUR/GBP shedding 0.34%, to hit 0.8401.

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