Investing.com - The euro fell to two-week lows against the U.S. dollar on Friday, despite positive German consumer climate data, as demand for the greenback remained supported by the Federal Reserve's decision to begin tapering its stimulus program in January.
EUR/USD hit 1.3625 during late Asian trade, the pair's lowest since December 6; the pair subsequently consolidated at 1.6334, shedding 0.24%.
The pair was likely to find support at 1.3544, the low of December 5 and resistance at 1.3694, Thursday's high.
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 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.
The euro was steady against the pound, with EUR/GBP inching up 0.02% to 0.8344.
Later in the day, the U.S. was to release revised data on third quarter GDP.
EUR/USD hit 1.3625 during late Asian trade, the pair's lowest since December 6; the pair subsequently consolidated at 1.6334, shedding 0.24%.
The pair was likely to find support at 1.3544, the low of December 5 and resistance at 1.3694, Thursday's high.
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 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.
The euro was steady against the pound, with EUR/GBP inching up 0.02% to 0.8344.
Later in the day, the U.S. was to release revised data on third quarter GDP.