Investing.com - The euro held gains against the U.S. dollar on Friday, trading near two-month highs after disappointing U.S. economic growth data sparked fresh concerns over the nation's recovery, while positive euro zone reports continued to support demand for the single currency.
EUR/USD hit 1.3818 during European afternoon trade, the pair's highest since December 30; the pair subsequently consolidated at 1.3808, climbing 0.72%.
The pair was likely to find support at 1.3694, the session low and resistance at 1.3894, the high of December 27.
Preliminary data showed that the U.S. gross domestic product rose 2.4% in the fourth quarter, slightly below expectations for a 2.5% expansion, after a 3.2% increase in the three months to September.
The report came a day after Federal Reserve Chair Janet Yellen on Thursday said the central bank will probably continue tapering its asset purchases while tracking data to figure how much recent softness in the economy is due to the weather.
Ms. Yellen was speaking in testimony to the Senate banking committee in Washington.
The single currency strengthened earlier, after preliminary data showed that consumer price inflation in the euro zone remained unchanged at an annualized rate of 0.8% in February, compared for expectations for a downtick to 0.7%.
A separate report showed that the unemployment rate in the single currency bloc remained unchanged at 12% in January, in line with expectations.
The positive data eased speculation that the European Central Bank could cut interest rates at its policy meeting next week.
Earlier in the day, official data showed that German retail sales rose 2.5% last month, exceeding expectations for a 1% increase. Retail sales in December were revised to a 2.1% drop from a previously estimated 2.5% decline.
A report also showed that French consumer spending dropped 2.1% in January, compared to expectations for a 0.2% rise. Consumer spending in December was revised up to a 0.2% increase from a previously estimated 0.1% slip.
The euro was higher against the pound, with EUR/GBP gaining 0.55% to 0.8261.
Also Friday, the Nationwide Building Society earlier said that U.K. house price inflation rose 0.6% in February, in line with expectations. In January, house price inflation was revised up to a 0.8% increase from a previously estimated 0.7% rise.
Later in the day, the U.S. was to release a report on manufacturing activity in the Chicago region, revised data on consumer sentiment and private sector data on pending home sales.