Investing.com - The euro edged higher against the dollar on Friday after investors sold the greenback for profits and ended a rally stemming from the Federal Reserve's decision to trim its USD85 billion in monthly bond purchases by USD10 billion beginning January.
Solid U.S. economic growth data cushioned the greenback's losses.
In U.S. trading on Friday, EUR/USD was up 0.14% at 1.3680, up from a session low of 1.3625 and off from a high of 1.3709.
The pair was likely to find support at 1.3625, the earlier low, and resistance at 1.3812, Wednesday's high.
The dollar rallied after the Federal Reserve announced on Wednesday that it was cutting its USD85 billion monthly bond-buying program by USD10 billion in January now that the economy is gaining steam.
Fed bond purchases tend to weaken the dollar by driving down long-term interest rates.
On Friday, profit taking kicked in and weakened the greenback, though surprisingly strong U.S. economic growth rates limited the greenback's losses.
The Commerce Department reported earlier that the U.S. gross domestic product expanded by 4.1% in the third quarter, well above consensus forecasts for 3.6% growth.
Meanwhile in Europe, Standard & Poor's cut the European Union's long-term credit ratings to 'AA+' from 'AAA' over concerns that E.U.'s financial profile has deteriorated while cohesion among E.U. members has lessened, though the euro shrugged off the news.
Also in Europe, the Gfk German consumer climate index rose to 7.6 in December from 7.4 in November. Analysts were expecting the index to remain unchanged this month.
Also in Germany, the producer price index in Europe's largest economy fell 0.1% in November, in line with expectations after a 0.2% decline the previous month.
The single currency was up against the pound and down against the yen, with EUR/GBP trading up 0.24% at 0.8363 and EUR/JPY trading down 0.09% at 142.28.
Solid U.S. economic growth data cushioned the greenback's losses.
In U.S. trading on Friday, EUR/USD was up 0.14% at 1.3680, up from a session low of 1.3625 and off from a high of 1.3709.
The pair was likely to find support at 1.3625, the earlier low, and resistance at 1.3812, Wednesday's high.
The dollar rallied after the Federal Reserve announced on Wednesday that it was cutting its USD85 billion monthly bond-buying program by USD10 billion in January now that the economy is gaining steam.
Fed bond purchases tend to weaken the dollar by driving down long-term interest rates.
On Friday, profit taking kicked in and weakened the greenback, though surprisingly strong U.S. economic growth rates limited the greenback's losses.
The Commerce Department reported earlier that the U.S. gross domestic product expanded by 4.1% in the third quarter, well above consensus forecasts for 3.6% growth.
Meanwhile in Europe, Standard & Poor's cut the European Union's long-term credit ratings to 'AA+' from 'AAA' over concerns that E.U.'s financial profile has deteriorated while cohesion among E.U. members has lessened, though the euro shrugged off the news.
Also in Europe, the Gfk German consumer climate index rose to 7.6 in December from 7.4 in November. Analysts were expecting the index to remain unchanged this month.
Also in Germany, the producer price index in Europe's largest economy fell 0.1% in November, in line with expectations after a 0.2% decline the previous month.
The single currency was up against the pound and down against the yen, with EUR/GBP trading up 0.24% at 0.8363 and EUR/JPY trading down 0.09% at 142.28.