Investing.com - The euro held steady against the U.S. dollar on Friday, hovering close to two-year lows after the release of disappointing German consumer climate data added to concerns over a slowdown in the euro zone's biggest economy.
EUR/USD hit 1.2738 during late Asian trade, the session low; the pair subsequently consolidated at 1.2742, dipping 0.06%.
The pair was likely to find support at 1.2660 and resistance at 1.2864, the high of September 24.
The euro remained under pressure after data showed that the Gfk German consumer climate index ticked down to 8.3 this month, from a reading of 8.6 in August. Analysts had expected the index to slip to 8.5.
The report added to concerns over the outlook for growth in the euro zone's biggest economy as data on Wednesday showed that Germany's Ifo business confidence index deteriorated for the fifth successive month in September.
The single currency dropped to nearly two-year lows against the dollar on Thursday after European Central Bank President Mario Draghi reiterated the bank's commitment to act with more policy measures to boost inflation in the euro zone.
"We stand ready to use additional unconventional instruments within our mandate, and alter the size or composition of our unconventional interventions should it become necessary to further address risks of a too prolonged period of low inflation," Draghi said.
On Wednesday, Mario Draghi had already vowed to keep monetary policy "accommodative" for as long as needed, and to use every tool at the ECB's disposal to fight deflation.
Meanwhile, demand for the dollar was still underpinned by expectations for an early U.S. rate hike.
Dallas Federal Reserve President Richard Fisher signalled on Thursday that the U.S. central bank may start raising interest rates around the spring of 2015.
The euro was little changed against the pound, with EUR/GBP dipping 0.01% to 0.7813.
Later in the day, the U.S. was to released revised data on second quarter economic growth, as well as a report by the University of Michigan on consumer sentiment.