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Forex - EUR/USD extends gains after U.S. data

Published 05/29/2015, 10:05 AM
© Reuters.  Euro pushes higher against dollar, E.Z. data continues to support
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Investing.com - The euro extended gains against the U.S. dollar on Friday, as U.S. first-quarter growth data failed to fuel optimism over the strength of the economy and as economic reports from the euro zone continued to support.

EUR/USD hit 1.1004 during U.S. morning trade, the pair's highest since May 25; the pair subsequently consolidated at 1.0991, gaining 0.43%.

The pair was likely to find support at 1.0868, Thursday's low and resistance at 1.1181, the high of May 21.

In a preliminary report, the U.S. Bureau of Economic Analysis said gross domestic product slipped 0.7% in the first three months of 2015, compared to expectations for a 0.8% decline and following a growth rate of 0.2% in the last quarter of 2014.

Separately, the University of Michigan said, in a revised report, that its consumer sentiment index rose to 90.7 in May from 88.6 the previous month, compared to expectations for a rise to 89.9.

The UoM also said its inflation expectations for the next 12 months ticked down to 2.8% in May from 2.9% in April.

Data also showed that the Chicago purchasing managers' index fell to 46.2 this month from a reading of 52.3 in April, compared to expectations for an uptick to 53.0.

The single currency had strengthened earlier, after official data showed that German retail sales rose 1.7% last month, beating expectations for a 0.8% gain. The change in retail sales for March was revised to a 1.4% decline from a previously estimated 2.3% drop.

Another report showed that Spanish consumer prices slipped 0.2% this month, compared to expectations for a 0.5% decline, after a 0.6% fall in April.

But investors remained cautious after Greece's creditors said a deal to unlock rescue aid isn't imminent. Athens had claimed a solution could be reached by Sunday.

The euro was also higher against the pound, with EUR/GBP advancing 0.61% to 0.7191.

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