Investing.com - The euro edged lower against the U.S. dollar on Friday, after U.S. producer price inflation data came in in line with expectations, as speculation the Federal Reserve could soon begin tapering its stimulus program supported the greenback.
EUR/USD hit 1.3710 during European afternoon trade, the pair's lowest since December 9; the pair subsequently consolidated at 1.3736, slipping 0.13%.
The pair was likely to find support at 1.3695, the low of December 9 and resistance at 1.3803, Thursday's high.
Official data showed that U.S. producer price inflation fell 0.1% last month, in line with expectations, after a 0.2% decline in October.
Core producer price inflation, which excludes food and energy, rose 0.1% in November, as expected, after a 0.2% increase the previous month.
The data did little to alter expectations that the Fed could begin tapering its USD85 billion a month asset purchase program at its policy meeting scheduled for December 17-18.
Meanwhile, demand for the euro remained mildy supported as expectations for further monetary easing by the European Central Bank dimmed after the bank left monetary policy unchanged at its meeting this month, following a surprise rate cut in November.
The euro was higher against the pound, with EUR/GBP rising 0.26% to 0.8434.
EUR/USD hit 1.3710 during European afternoon trade, the pair's lowest since December 9; the pair subsequently consolidated at 1.3736, slipping 0.13%.
The pair was likely to find support at 1.3695, the low of December 9 and resistance at 1.3803, Thursday's high.
Official data showed that U.S. producer price inflation fell 0.1% last month, in line with expectations, after a 0.2% decline in October.
Core producer price inflation, which excludes food and energy, rose 0.1% in November, as expected, after a 0.2% increase the previous month.
The data did little to alter expectations that the Fed could begin tapering its USD85 billion a month asset purchase program at its policy meeting scheduled for December 17-18.
Meanwhile, demand for the euro remained mildy supported as expectations for further monetary easing by the European Central Bank dimmed after the bank left monetary policy unchanged at its meeting this month, following a surprise rate cut in November.
The euro was higher against the pound, with EUR/GBP rising 0.26% to 0.8434.