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EUR/USD gains on mixed U.S. data, solid euro area growth rates

Published 02/14/2014, 11:34 AM
Updated 02/14/2014, 11:35 AM
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Investing.com - The euro firmed against the greenback on Friday after better-than-expected growth rates out of Europe fueled demand for the single currency, while mixed data out of the U.S. tarnished the greenback's appeal.

In U.S. trading, EUR/USD was trading at 1.3688, up 0.06%, up from a session low of 1.3674 and off a high of 1.3715.

The pair was likely to find support at 1.3562, Wednesday's low, and resistance at 1.3717, the high from Jan. 27.

The preliminary Thomson Reuters/University of Michigan consumer sentiment index remained unchanged at 81.2 for February, beating expectations for a fall to 80.6.

The numbers boosted the dollar somewhat, though soft output data kept the greenback lower against the euro.

The Federal Reserve reported earlier that U.S. industrial production fell 0.3% in January, defying expectations for a 0.3% rise after a 0.3% increase the previous month.

Data also showed that U.S. import prices rose 0.1% last month, confounding expectations for a 0.1% downtick after a 0.2% rise in December.

The euro strengthened after preliminary data showed that the euro area's gross domestic product expanded by 0.3% in the fourth-quarter, beating expectations for a 0.2% gain, after a 0.1% rise in the third quarter.

A separate report showed that German GDP rose 0.4% in the fourth quarter, exceeding expectations for a 0.3% expansion, and after a 0.3% rise in the three months to September.

In France, the GDP expanded by 0.3% in the last quarter, compared to expectations for a 0.2% rise, after a 0.1% contraction in the third quarter.

The euro was down against the pound, with EUR/GBP slipping 0.38% to 0.81825, and down against the yen, with EUR/JPY trading down 0.24% at 139.45.

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