Forex - EUR/USD steady, focus on upcoming data

The euro was steady against the U.S. dollar on Friday, trading near three-week highs despite disappointing German data, as markets eyed the release of additional economic reports later in the day.

EUR/USD hit 1.3032 during late Asian trade, the session low; the pair subsequently consolidated at 1.3040, easing 0.05%. 

The pair was likely to find support at 1.2934, Thursday's low and resistance at 1.3159, the high of May 3. 

Official data earlier showed that German retail sales fell 0.4% in April, disappointing expectations for a 0.2% rise, after a 0.1% decline the previous month. 

Meanwhile, the greenback remained supported after downbeat U.S. data dampened expectations for the Federal Reserve to scale down its stimulus program in the near future. 

On Thursday, the Department of Labor said the number of people who filed for unemployment assistance rose to a seasonally adjusted 354,000 last week, compared to expectations for a decline to 340,000.

Meanwhile, the Commerce Department said U.S. first quarter gross domestic product was revised down to 2.4% from a preliminary reading of 2.5%. Analysts had expected an unchanged reading. 

A separate report by the National Association of Realtors said that its pending home sales index rose 0.3% to hit the highest level since April 2010 last month, but fell short of expectations for a 1.1% increase. 

The euro was also steady against the pound with EUR/GBP inching 0.03% higher, to hit 0.8566. 

Later in the day, the euro zone was to publish preliminary data on consumer price inflation as well as data on the unemployment rate.

The U.S. was to release revised data on consumer sentiment from the University of Michigan, as well as data on personal income and expenditure and a report on manufacturing activity in Chicago.

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European stocks mixed to higher, eyes on U.S. data; Dax down 0.07%

European stocks were mixed to higher on Thursday, although expectations for the Federal Reserve to scale back its bond-buying program continued to weigh. 

During European morning trade, the EURO STOXX 50 edged up 0.09%, France’s CAC 40 rose 0.26%, while Germany’s DAX 30 eased 0.07%. 

Investors were looking ahead to the weekly U.S. report on jobless claims later in the global day amid ongoing speculation over whether the Federal Reserve is moving closer to scaling back its USD85 billion-a-month asset purchase program. 

Markets were also jittery amid speculation on whether the European Central Bank will implement negative interest rates on deposits following recent comments by senior bank officials. 

Financial stocks were broadly higher, as French lenders Societe Generale and BNP Paribas advanced 0.68% and 0.91%, while Germany's Deutsche Bank added 0.34%. 

Peripheral lenders added to gains, with Spanish banks BBVA and Banco Santander edging up 0.14% and 0.18% respectively, while Italy's Intesa Sanpaolo and Unicredit climbed 0.84% and 0.93%. 

On the downside, Aeroports de Paris slid 0.30% after French Finance Minister Pierre Moscovici said the government plans to sell as many as 10 million shares in the company. 

Elsewhere, Fiat edged down 0.29% amid reports the Italian auto maker is in financing talks with a pool of banks to buy the 41.5% Chrysler stake that is held by the United Auto Workers’ retiree health-care trust and to refinance the two automakers’ debt. 

In London, commodity-heavy FTSE 100 added 0.25%, supported by gains in the mining sector. 

BHP Billiton and Rio Tinto saw shares rally 0.78% and 1.40% respectively, while Anglo American jumped 1.26% and Polymetal surged 2.74%. 

Financial stocks were also on the upside, as HSBC Holdings climbed 0.45% and Barclays gained 0.59%, while the Royal Bank of Scotland and Lloyds Banking rallied 1.09% and 1.24%. 

In addition, Glaxo rose 0.29% after the U.K. drugmaker won approval from the Food and Drug Administration for its Tafinlar and Mekinist drugs for patients with melanoma that has spread or can't be surgically removed. 

In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.07% loss, S&P 500 futures signaled a 0.08% fall, while the Nasdaq 100 futures indicated a 0.21% decline. 

Later in the day, the U.S. was to release data on pending home sales.

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