Forex - EUR/USD erases gains after U.S. data

The euro erased gains against the U.S. dollar on Friday, as fresh expectations for the Federal Reserve to soon begin to taper its stimulus program supported demand for the greenback following the release of U.S. data. 

EUR/USD pulled away from 1.3103, the pair's highest since June 25, to hit 1.3018 during U.S. morning trade, slipping 0.14%. 

The pair was likely to find support at 1.2985, the low of June 2 and resistance at 1.3103, the session high. 

In a revised report, the University of Michigan said that its consumer sentiment index rose to 84.1 in June, from a reading of 82.7 the previous month, beating expectations for a rise to 82.8. 

The data came after a report showed that the Chicago purchasing managers' index fell to 51.6 this month, from 58.7 in May, exceeding expectations for a decline to 56.0 but still remaining in expansion territory. 

Also Friday, a Fed official highlighted the central bank's upcoming September policy meeting as a possible time when it may need to consider paring back its quantitative easing program. 

In the euro zone, official data showed that German retail sales rose 0.8% in May, beating expectations for a 0.2% gain, after a 0.1% fall the previous month. 

In addition, official data showed that consumer spending in France rose 0.5% in May, confounding expectations for a 0.1% fall, after a 0.5% decline the previous month. 

The euro was higher against the pound with EUR/GBP adding 0.16%, to hit 0.8559. 

Earlier in the day, the U.K. Gfk consumer confidence index improved to minus 21 in June, from a reading of minus 22 the previous month, in line with expectations. 

A separate report showed that house price inflation rose 0.3% this month, as expected, after a 0.4% rise in May.