Investing.com - The euro erased gains against the U.S. dollar on Friday, as upbeat U.S. added to optimism over the strength of the country's economy, lending broad support to the greenback.
EUR/USD pulled back from 1.1310, the session high, to hit 1.1229 during U.S. morning trade, down 0.15%.
The pair was likely to find support at 1.1104, the low of August 20 and resistance at 1.1366, Thursday's high.
The University of Michigan reported on Friday that its index of consumer sentiment ticked down to 91.9 this month from 92.9 in July. Analysts had expected the index to rise to 93.0.
The data came shortly after the U.S. Bureau of Economic Analysis reported that the goods trade deficit narrowed to $59.12 billion in July from $62.26 billion the previous month.
A separate report showed that U.S. personal spending rose 0.3% last month, disappointing expectations for an increase of 0.4%. Personal spending rose 0.3% in June, whose figure was revised from a previously estimated 0.2% gain.
Data also showed that U.S. personal income rose by 0.4% in July, in line with expectations.
The greenback strengthened broadly after data on Thursday showed that U.S. gross domestic product grew at an annual rate of 3.7% in the second quarter, above expectations for growth of 3.2%.
The upbeat data added to optimism over the perspective for global economic growth, while concerns over volatility in Asian markets continued to subside.
The single currency came under broad selling pressure after the European Central Bank warned on Wednesday that the risk to its medium-term inflation target has increased and it is prepared to expand its economic stimulus program if necessary.
The euro rose to seven-month highs earlier in the week as investors fled to the relative safe-haven currencies amid intense volatility in markets.
Earlier Friday, preliminary data showed that Germany's consumer price index was flat in August, compared to expectations for a 0.1% downtick, after a 0.2% gain the previous month.
The euro was higher against the pound, with EUR/GBP adding 0.12% to 0.7308.
Markets shrugged a report by the Office for National Statistics on Friday showing that the U.K. GDP rose 0.7% in the second quarter, in line with expectations and unchanged from a preliminary estimate.
On a yearly basis, the U.K. economy grew at a rate of 2.6% in the last quarter, in line with market expectations.