Investing.com - The euro edged lower against the U.S. dollar on Friday, as the European Central Bank's suprise rate cut on Thursday continued to weigh, although sentiment on the greenback remained fragile ahead of U.S. jobs data later in the day.
EUR/USD hit 1.3389 during late Asian trade, the session low; the pair subsequently consolidated at 1.3408, slipping 0.09%.
The pair was likely to find support at 1.3298, Thursday's low and an almost two-month low and resistance at 1.3529, Thursday's high.
The euro came under pressure on Thursday after ECB President Mario Draghi confirmed that the central bank cut its benchmark interest rate to a record low 0.25% from 0.5%, saying the decision was 'in line' with the ECB's forward guidance on interest rate policy from July.
The bank cut its marginal lending to 0.75% from 1% and left its deposit facility rate unchanged at 0.0%.
Draghi reiterated that euro zone borrowing costs will remain at their present or lower levels until conditions improve, indicating that further rate cuts are still possible.
Meanwhile, investors awaited the release of highly-anticipated U.S. employment data later in the trading session, after a strong report on U.S. economic growth on Thursday fuelled speculation the Federal Reserve could begin tapering its asset purchase program sooner-than-expected.
The Bureau of Economic Analysis said U.S. gross domestic product grew at a seasonally adjusted annual rate of 2.8% in the three months to September, beating expectations for growth of 2%. The U.S. economy grew by 2.5% in the previous quarter.
The euro was also lower against the pound with EUR/GBP edging down 0.10%, to hit 0.8330.
Later in the day, the University of Michigan was to release the preliminary reading of its consumer sentiment index. The U.S. was also to report government data on nonfarm payrolls and the unemployment rate.
EUR/USD hit 1.3389 during late Asian trade, the session low; the pair subsequently consolidated at 1.3408, slipping 0.09%.
The pair was likely to find support at 1.3298, Thursday's low and an almost two-month low and resistance at 1.3529, Thursday's high.
The euro came under pressure on Thursday after ECB President Mario Draghi confirmed that the central bank cut its benchmark interest rate to a record low 0.25% from 0.5%, saying the decision was 'in line' with the ECB's forward guidance on interest rate policy from July.
The bank cut its marginal lending to 0.75% from 1% and left its deposit facility rate unchanged at 0.0%.
Draghi reiterated that euro zone borrowing costs will remain at their present or lower levels until conditions improve, indicating that further rate cuts are still possible.
Meanwhile, investors awaited the release of highly-anticipated U.S. employment data later in the trading session, after a strong report on U.S. economic growth on Thursday fuelled speculation the Federal Reserve could begin tapering its asset purchase program sooner-than-expected.
The Bureau of Economic Analysis said U.S. gross domestic product grew at a seasonally adjusted annual rate of 2.8% in the three months to September, beating expectations for growth of 2%. The U.S. economy grew by 2.5% in the previous quarter.
The euro was also lower against the pound with EUR/GBP edging down 0.10%, to hit 0.8330.
Later in the day, the University of Michigan was to release the preliminary reading of its consumer sentiment index. The U.S. was also to report government data on nonfarm payrolls and the unemployment rate.