Investing.com - The dollar softened against the euro on Friday in spite of positive U.S. data, as markets bet the Federal Reserve will keep benchmark interest rates at current rock-bottom levels well into 2015 despite recent statements from a monetary authority suggesting otherwise.
In U.S. trading, EUR/USD was up 0.16% at 1.3634, up from a session low of 1.3610 and off a high of 1.3643.
The pair was likely to find support at 1.3576, Thursday's low, and resistance at 1.3677, the high from June 6.
The dollar fell on Friday after markets bet the Federal Reserve will keep interest rates low for some time to come.
On Thursday, St. Louis Federal Reserve President James Bullard told Fox Business Network that an improving economy may make conditions ripe for interest rates to rise possibly in early 2015.
The dollar rose initially, though investors digested Bullard's comments and took them in stride, as he is a known inflation hawk and is a non-voting member of the Federal Open Market Committee, which allowed for profit taking on Friday despite positive U.S. data.
The revised Thomson Reuters/University of Michigan consumer sentiment index rose to 82.5 in June from 81.2 in May, beating expectations for a 82.2 reading.
In the euro zone, preliminary data on Friday showed that German consumer price inflation rose 0.3% this month, more than the expected 0.2% gain, after a 0.1% fall in May.
A separate report showed that Spain's CPI rose at an annual rate of 0.1% in June, compared to expectations for a 0.3% rise, after a 0.2% increase in May.
Official data earlier showed that French consumer spending rose 1% in May, exceeding expectations for a 0.4% gain, after a 0.2% fall in April, whose figure was revised from a previously estimated 0.3% decline.
Elsewhere, the euro was up against the pound, with EUR/GBP up 0.20% at 0.8010, and down against the yen, with EUR/JPY down 0.21% at 138.18.