Investing.com – The euro held steady near two-week lows against
the U.S. dollar on Friday, as positive U.S. inflation data lent
broad support to the greenback, while growing expectations for
further easing by the European Central Bank dampened demand for the
EUR/USD hit 1.1067 during U.S. morning trade, the pair's lowest
since February 3; the pair subsequently consolidated at 1.1104.
The pair was likely to find support at 1.0987, the low of
October 6 and resistance at 1.1153, Thursday's high.
Data showed that the U.S. consumer price index was flat in
January, compared to expectations for a 0.1% downtick and after a
0.1% fall the previous month. Year-on-year, consumer prices
increased by 1.4% last month.
Core CPI, which excludes food and energy, rose 0.3% in January,
more than the expected 0.2% gain and after an increase of 0.2% in
Meanwhile, sentiment on the single currency remained vulnerable
after the minutes of the European Central Bank's January meeting,
released on Thursday, signaled that the bank is prepared to inject
further monetary easing next month if necessary to bolster
The euro was higher against the pound, with EUR/GBP gaining
0.49% to 0.7783.
The pound remained under pressure as discussions regarding
Britain's European Union membership continued in Brussels for a
second day on Friday.
U.K. Prime Minister David Cameron said Friday morning that there
was 'still no deal' on Britain's reforms package.
Earlier Friday, the U.K. Office for National Statistics said
that retail sales rose 2.3% in January, beating expectations for a
0.8% gain. Year-on-year, retail sales climbed 5.2% last month.
Core retail sales, which exclude automobiles and fuel, increased
by 2.3% in January, compared to expectations for an uptick of
A separate report showed that U.K. public sector net borrowing
declined by £11.81 billion in January, confounding expectations for
a drop of £13.95 billion.
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