Investing.com - The euro flirted with 22-month lows against the dollar for a second consecutive day on Friday after data revealed the U.S. economy grew at a healthy clip in the second quarter.
In U.S. trading, EUR/USD was down 0.49% at 1.2688, up from a session low of 1.2679 and off a high of 1.2761.
The pair was likely to find support at 1.2660, the low from Nov. 13, 2012, and resistance at 1.2903, Tuesday's high.
The dollar advanced after the Commerce Department said U.S. gross domestic product expanded at an annual rate of 4.6% in the second quarter, in line with the consensus forecast, after contracting by 2.1% in the first three months of the year.
U.S. second quarter GDP was initially reported to have increased by 4.2%.
The positive data fueled already growing expectations for rate hikes to kick in earlier next year than once anticipated.
On Thursday, Dallas Federal Reserve President Richard Fisher said that the U.S. central bank may start raising interest rates around the spring of 2015, earlier than many market expectations.
Separately, the Thomson Reuters/University of Michigan final consumer sentiment index remained unchanged at 84.6 this month, just shy of expectations for an uptick to 84.7.
The euro, meanwhile, continued to come under pressure after European Central Bank President Mario Draghi reiterated on Thursday the bank's commitment to act with more policy measures to boost inflation in the euro zone.
A day earlier, Mario Draghi had already vowed to keep monetary policy "accommodative" for as long as needed, and to use every tool at the ECB's disposal to fight deflation.
Elsewhere, the euro was down against the pound, with EUR/GBP down 0.12% at 0.7804, and up against the yen, with EUR/JPY up 0.03% at 138.68.