Forex - EUR/USD remains lower after disappointing UoM report

The euro remained lower against the U.S. dollar on Friday, after the release of disappointing U.S. consumer sentiment data, as expectations for the Federal Reserve to soon begin tapering its stimulus program continued to support the greenback. 

EUR/USD hit 1.3338 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.3361, shedding 0.43%. 

The pair was likely to find support at 1.3298, Thursday's low and an almost two-month low and resistance at 1.3529, Thursday's high. 

In a preliminary report, the University of Michigan said its consumer sentiment index ticked down to 72.0 in November, from a reading of 73.2 the previous month, disappointing expectations for a rise to 74.5. 

The report came after the Bureau of Labor Statistics said the U.S. economy added 204,000 jobs in October, beating expectations for a 125,000 increase, after an upwardly revised 163,000 rise the previous month. 

The U.S. unemployment rate ticked up to 7.3% last month, from 7.2% in September, in line with expectations. 

The strong employment data added to expectations that the Fed could begin scaling back its asset purchase program as soon as next month. 

Meanwhile, sentiment on the euro remained vulnerable after European Central Bank President Mario Draghi confirmed on Thursday that the bank cut its benchmark interest rate to a record low 0.25% from 0.5% and signalled the possibility of further rate cuts. 

Earlier Friday, official data showed that Germany's trade surplus widened to EUR18.8 billion in September, from EUR15.8 billion the previous month, which was revised up from EUR15.6 billion. Analysts had expected the trade surplus to narrow to EUR15.5 billion in September. 

Separately, France’s credit rating was lowered to AA from AA+ by Standard & Poor's. The ratings company said slower growth will constrain the government’s ability to improve public finances. 

The euro was higher against the pound with EUR/GBP adding 0.20%, to hit 0.8354. 

Also Friday, official data showed that the U.K. trade deficit widened to GBP9.82 billion in September, from GBP9.56 billion the previous month, which was revised from a previously estimated deficit of GBP9.63 billion. 

Analysts had expected the trade deficit to narrow to GBP9.20 billion in September.