Investing.com - The euro was steady against the U.S. dollar on Friday, trading near seven-week lows as growing expectations for the Federal Reserve to begin tapering its stimulus program this month continued to support demand for the greenback.
EUR/USD hit 1.3138 during late Asian trade, the session high; the pair subsequently consolidated at 1.3127, easing up 0.06%.
The pair was likely to find support at 1.3052, the low of July 16 and resistance at 1.3223, Thursday's high.
The greenback strengthened broadly on Thursday after data showed that U.S. sector activity expanded at the fastest rate since March 2011 in August.
The Institute of Supply Management said that its non-manufacturing purchasing managers' index rose to 58.6 in August, from a reading of 56.0 the previous month, hitting ta 29-month high.
In addition, the Department of Labor said the number of people filing for initial jobless benefits in the week ending August 30 fell by 9,000 to a seasonally adjusted 323,000, compared to forecasts for a decline of 2,000.
Investors were looking ahead to a highly-anticipated U.S. nonfarm payrolls report later in the day, as it was seen as key to the Fed’s decision on tapering.
Meanwhile, the euro remained under pressure after after European Central Bank President Mario Draghi on Thursday said the central bank's monetary policy will remain accomodative for as long as necessary and that interest rates should remain at present or lower levels for an extended period of time.
Official data on Friday showed that Germany's trade surplus narrowed unexpectedly to EUR14.5 billion in July, from an upwardly revised surplus of EUR15.8 billion the previous month. Analysts had expected the trade surplus to expand to EUR16.1 billion in July.
The euro was steady against the pound with EUR/GBP easing 0.04%, to hit 0.8413.
Elsewhere, world leaders from the Group of 20 nations put pressure on U.S. President Barack Obama to decide against launching military strikes in Syria, which many of them fear would hurt the global economy and push up oil prices.
Later in the day, the U.S. was to release government data on nonfarm payrolls and the unemployment rate.
EUR/USD hit 1.3138 during late Asian trade, the session high; the pair subsequently consolidated at 1.3127, easing up 0.06%.
The pair was likely to find support at 1.3052, the low of July 16 and resistance at 1.3223, Thursday's high.
The greenback strengthened broadly on Thursday after data showed that U.S. sector activity expanded at the fastest rate since March 2011 in August.
The Institute of Supply Management said that its non-manufacturing purchasing managers' index rose to 58.6 in August, from a reading of 56.0 the previous month, hitting ta 29-month high.
In addition, the Department of Labor said the number of people filing for initial jobless benefits in the week ending August 30 fell by 9,000 to a seasonally adjusted 323,000, compared to forecasts for a decline of 2,000.
Investors were looking ahead to a highly-anticipated U.S. nonfarm payrolls report later in the day, as it was seen as key to the Fed’s decision on tapering.
Meanwhile, the euro remained under pressure after after European Central Bank President Mario Draghi on Thursday said the central bank's monetary policy will remain accomodative for as long as necessary and that interest rates should remain at present or lower levels for an extended period of time.
Official data on Friday showed that Germany's trade surplus narrowed unexpectedly to EUR14.5 billion in July, from an upwardly revised surplus of EUR15.8 billion the previous month. Analysts had expected the trade surplus to expand to EUR16.1 billion in July.
The euro was steady against the pound with EUR/GBP easing 0.04%, to hit 0.8413.
Elsewhere, world leaders from the Group of 20 nations put pressure on U.S. President Barack Obama to decide against launching military strikes in Syria, which many of them fear would hurt the global economy and push up oil prices.
Later in the day, the U.S. was to release government data on nonfarm payrolls and the unemployment rate.