Investing.com - The euro fell against the U.S. dollar on Friday, re-approaching two-year lows as growing concerns over the outlook for growth in Germany and the rest of the world dampened demand for the single currency.
EUR/USD hit 1.2622 during European afternoon trade, the pair's lowest since Wednsday; the pair subsequently consolidated at 1.2639, declining 0.40%.
The pair was likely to find support at 1.2132 and resistance at 1.2792, Thursday's high and a two-and-a-half week high.
The euro came under pressure following reports that Germany could cut its growth forecasts for 2014 and 2015 next week, fuelling concerns over a recession in Europe's largest economy.
The news followed data on Thursday showing that German exports fell in August by the most since January 2009, while a separate report released earlier in the week showed that German factory orders dropped by the most since 2009 in August.
The weak data added to expectations that the European Central Bank will implement fresh stimulus measures to help bolster growth.
Demand for the safe-haven greenback strengthened earlier as worries over the health of the global economy persisted after the International Monetary Fund cut its global economic growth forecasts for the third time this year on Tuesday and warned that the recovery remains weak and uneven.
But the dollar's gains were expected to remain limited as the minutes of the Federal Reserve's September 16-17 policy meeting suggested that the bank is in no hurry to raise interest rates and raised concerns over the dollar's strength.
Meanwhile, the euro was steady against the pound, with EUR/GBP inching up 0.05% to 0.7883.
In the U.K., the Office for National Statistics reported on Friday that the trade deficit narrowed to £9.10 billion in August from £10.41 billion in July, whose figure was revised from a previously estimated deficit of £10.19 billion.
Analysts had expected the trade deficit to narrow to £9.60 billion in August.