Investing.com - The euro trimmed losses against the U.S. dollar on Friday, after the release of strong U.S. economic growth data boosted risk sentiment, although the Federal Reserve's decision to begin tapering its stimulus program continued to support the greenback.
EUR/USD pulled away from 1.3625, the pair's lowest since December 5, to hit 1.3645 during European afternoon trade, still down 0.14%.
The pair was likely to find support at 1.3544, the low of December 5 and resistance at 1.3694, Thursday's high.
Official data showed that U.S. gross domestic product expanded by 4.1% in the third quarter, above initial estimates for 3.6% growth.
The dollar remained supported after the Fed announced Wednesday that it would reduce its USD85 billion-a-month bond buying program by USD10 billion in January. Outgoing Fed Chairman Ben Bernanke said the economy was continuing to make progress.
The U.S. central bank reiterated that interest rates are likely to remain low even after the unemployment rate drops below 6.5%, the threshold at which the Fed has previously said it would start to consider rate increases.
In the euro zone, data earlier showed that the Gfk German consumer climate index rose to 7.6 in December, from a reading of 7.4 the previous month. Analysts had expected the index to remain unchanged this month.
A separate report showed that German producer price inflation fell 0.1% in November, in line woth expectations, after a 0.2% decline the previous month.
The euro was higher against the pound, with EUR/GBP edging up 0.13% to 0.8356.
EUR/USD pulled away from 1.3625, the pair's lowest since December 5, to hit 1.3645 during European afternoon trade, still down 0.14%.
The pair was likely to find support at 1.3544, the low of December 5 and resistance at 1.3694, Thursday's high.
Official data showed that U.S. gross domestic product expanded by 4.1% in the third quarter, above initial estimates for 3.6% growth.
The dollar remained supported after the Fed announced Wednesday that it would reduce its USD85 billion-a-month bond buying program by USD10 billion in January. Outgoing Fed Chairman Ben Bernanke said the economy was continuing to make progress.
The U.S. central bank reiterated that interest rates are likely to remain low even after the unemployment rate drops below 6.5%, the threshold at which the Fed has previously said it would start to consider rate increases.
In the euro zone, data earlier showed that the Gfk German consumer climate index rose to 7.6 in December, from a reading of 7.4 the previous month. Analysts had expected the index to remain unchanged this month.
A separate report showed that German producer price inflation fell 0.1% in November, in line woth expectations, after a 0.2% decline the previous month.
The euro was higher against the pound, with EUR/GBP edging up 0.13% to 0.8356.