Investing.com - The dollar flexed its muscles against the euro on Friday as investors shifted their focus from the Federal Reserve to the European Central Bank, which many see cutting interest rates next week thanks to soft pricing and labor-market data.
In U.S. trading on Friday, EUR/USD was down 0.73% at 1.3485, up from a session low of 1.3481 and off from a high of 1.3590.
The pair was likely to find support at 1.3474, the low from Oct. 16, and resistance at 1.3818, Monday's high.
On Thursday, official data revealed that the euro zone's consumer price index rose 0.7% in October, the slowest pace since November 2009, after rising 1.1% in September, while the unemployment rate came in at a record high 12.2% in September.
The date fueled expectations that the European Central Bank may trim interest rates at a monetary policy meeting next week or not far down the road.
Meanwhile in the U.S., a widely-watched factory barometer beat expectations and fanned expectations for the Federal Reserve to scale back dollar-weakening stimulus programs in the coming months, especially its USD85 billion monthly bond-buying program.
In the U.S., the Institute of Supply Management's Manufacturing Purchasing Managers Index rose to 56.4 in October from 56.2 in September, defying expectations for a decline to 55.0.
The report came a day after data showed that manufacturing activity in the Chicago region expanded at the fastest rate in 30 years in October, while a separate report showed that U.S. initial jobless claims fell in line with expectations last week.
The euro, meanwhile, was up slightly against the pound and down against the yen, with EUR/GBP trading up 0.01% at 0.8471 and EUR/JPY trading down 0.30% at 133.22.
In U.S. trading on Friday, EUR/USD was down 0.73% at 1.3485, up from a session low of 1.3481 and off from a high of 1.3590.
The pair was likely to find support at 1.3474, the low from Oct. 16, and resistance at 1.3818, Monday's high.
On Thursday, official data revealed that the euro zone's consumer price index rose 0.7% in October, the slowest pace since November 2009, after rising 1.1% in September, while the unemployment rate came in at a record high 12.2% in September.
The date fueled expectations that the European Central Bank may trim interest rates at a monetary policy meeting next week or not far down the road.
Meanwhile in the U.S., a widely-watched factory barometer beat expectations and fanned expectations for the Federal Reserve to scale back dollar-weakening stimulus programs in the coming months, especially its USD85 billion monthly bond-buying program.
In the U.S., the Institute of Supply Management's Manufacturing Purchasing Managers Index rose to 56.4 in October from 56.2 in September, defying expectations for a decline to 55.0.
The report came a day after data showed that manufacturing activity in the Chicago region expanded at the fastest rate in 30 years in October, while a separate report showed that U.S. initial jobless claims fell in line with expectations last week.
The euro, meanwhile, was up slightly against the pound and down against the yen, with EUR/GBP trading up 0.01% at 0.8471 and EUR/JPY trading down 0.30% at 133.22.