Forex - EUR/USD falls as U.S. consumer sentiment gains

The dollar firmed against the euro on Friday after revised U.S. consumer sentiment data beat expectations. 

In U.S. trading on Friday, EUR/USD was down 0.32% at 1.3198, up from a session low of 1.3174 and off from a high of 1.3255.

The pair was likely to find support at 1.3166, the low from July 25, and resistance at 1.3398, Wednesday's high.

The Thomson Reuters/University of Michigan revised consumer sentiment index for August rose to 82.0. from a reading 80.0 in July, beating expectations for an uptick to 80.5. 

Elsewhere in the U.S., a widely-watched Chicago purchasing managers' index rose to 53.0 this month from 52.3 in July, in line with expectations. 

Friday's data rekindled expectations that the Federal Reserve may begin to taper its USD85 billion monthly bond-buying program in September as opposed to later in the year.

Monetary stimulus tools such as Federal Reserve asset purchases weaken the dollar by driving down interest rates, and talk of their dismantling strengthens the greenback. 

Also Friday, the Bureau of Economic Analysis revealed that personal spending rose slightly less than expected in July, expanding 0.1% after an upwardly revised 0.6% increase the previous month. Analysts were expecting personal spending to rise 0.3% last month. 

Across the Atlantic in the euro zone, official data revealed that the bloc's consumer price index expanded 1.3% in August compared to 1.6% in July, just shy of market expectations for a 1.4% inflation rate 

The euro zone's unemployment rate remained unchanged at 12.1% in July, in line with expectations.

The euro, meanwhile, was down against the pound and down against the yen, with EUR/GBP trading down 0.12% at 0.8530 and EUR/JPYtrading down 0.35% at 129.71.

U.S. markets will be closed on Monday for the country's Labor Day holiday.

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Forex - GBP/USD slips lower after U.S. data

The pound slipped lower against the U.S. dollar on Friday, as the release of positive U.S. data added to speculation the Federal Reserve could begin tapering its asset purchases as soon as next month, boosting demand for the greenback. 

GBP/USD hit 1.5474 during U.S. morning trade, the pair's lowest since August 28; the pair subsequently consolidated at 1.3208, falling 0.19%. 

Cable was likely to find support at 1.5423, the low of August 14 and resistance at 1.5549, Thursday's high. 

In a revised report, the University of Michigan said its consumer sentiment index rose to 82.1 in August, from a reading of 80.0 the previous month, beating expectations for an uptick to 80.5. 

A separate report showed that the Chicago purchasing managers' index rose to 53.0 this month, from a reading of 52.3 in July, in line with expectations. 

Earlier Friday, the Bureau of Economic Analysis said that personal spending rose less-than-expected in July, gaining 0.1% after an upwardly revised 0.6% increase the previous month. Analysts had expected personal spending to rise 0.3% last month. 

In addition, data showed that U.S. core consumer prices, excluding food and energy, rose 0.1% in July, confounding expectations for a 0.2%, following a 0.2% increase in June. 

In the U.K., the Bank of England said that net lending to individuals fell to GBP1.3 billion in July, from GBP1.4 billion the previous month, disappointing expectations for a rise to GBP1.7 billion. 

Data also showed that house price inflation in the U.K. rose 0.6% in August, in line with expectations. 

Separately, markets were still jittery amid concerns over an impending U.S.-led military strike against Syria, following the alleged use of chemical weapons. 

The White House said on Thursday that President Barack Obama will decide on a response to Syria based on U.S. interests, but will continue to consult with Britain despite the British Parliament's "no" vote to a military intervention. 

Sterling was fractionally higher against the euro with EUR/GBP edging down 0.07%, to hit 0.8534. 

In the euro zone, official data showed that consumer price inflation ticked down to an annualized rate of 1.3% in August, from 1.6% in July, compared to expectations for a slip to 1.4%. 

A separate report showed that the unemployment rate in the euro zone remained unchanged at record-high 12.1% in July, in line with expectations.

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Forex - EUR/USD hits fresh 2-week lows after strong U.S. data

The euro dropped to fresh two-week lows against the U.S. dollar on Friday, after strong U.S. economic reports fuelled fresh expectations for the Federal Reserve to soon begin tapering its stimulus program. 

EUR/USD hit 1.3210 during U.S. morning trade, the pair's lowest since August 15; the pair subsequently consolidated at 1.3210, shedding 0.22%. 

The pair was likely to find support at 1.3144, the low of July 21 and resistance at 1.3294, the high of August 2. 

In a revised report, the University of Michigan said its consumer sentiment index rose to 82.1 in August, from a reading of 80.0 the previous month, beating expectations for an uptick to 80.5. 

A separate report showed that the Chicago purchasing managers' index rose to 53.0 this month, from a reading of 52.3 in July, in line with expectations. 

Earlier Friday, the Bureau of Economic Analysis said that personal spending rose less-than-expected in July, gaining 0.1% after an upwardly revised 0.6% increase the previous month. Analysts had expected personal spending to rise 0.3% last month. 

In addition, data showed that U.S. core consumer prices, excluding food and energy, rose 0.1% in July, confounding expectations for a 0.2%, following a 0.2% increase in June. 

In the euro zone, official data showed that consumer price inflation ticked down to an annualized rate of 1.3% in August, from 1.6% in July, compared to expectations for a slip to 1.4%. 

A separate report showed that the unemployment rate in the euro zone remained unchanged at 12.1% in July, in line with expectations. 

Official data also showed that German retail sales dropped 1.4% last month, confounding expectations for a 0.5% rise. June's figure was revised up to a 0.8% decline from a previously estimated 1.5% fall. 

The euro was steady against the pound with EUR/GBP dipping 0.04%, to hit 0.8536. 

Markets were jittery amid concerns over an impending U.S.-led military strike against Syria, following the alleged use of chemical weapons. 

The White House said on Thursday that President Barack Obama will decide on a response to Syria based on U.S. interests, but will continue to consult with Britain despite the British Parliament's "no" vote to a military intervention.

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U.S. futures rise ahead of data; Dow Jones up 0.12%

U.S. stock futures pointed to a higher open on Friday, as investors eyed the release of U.S. data later in the day, after positive U.S. economic reports indicated that the recovery is on track. 

Ahead of the open, the Dow Jones Industrial Average futures pointed to a 0.12% gain, S&P 500 futures signaled a 0.20% rise, while the Nasdaq 100 futures indicated a 0.22% increase. 

The Commerce Department on Thursday said gross domestic product expanded at an annual rate of 2.5% in the three months to June, above expectations for growth of 2.2% and up from a preliminary estimate of 1.7%.

In a separate report, the Department of Labor said the number of people who filed for unemployment assistance fell by 6,000 to a seasonally adjusted 331,000 last week, the lowest level since October 2007 last week, compared to forecasts for a decline of 5,000.

Investors remained cautious however, amid concerns over an impending U.S.-led military strike against Syria, following the alleged use of chemical weapons.

The White House said on Thursday that President Barack Obama will decide on a response to Syria based on U.S. interests, but will continue to consult with Britain despite the British Parliament's "no" vote to a military intervention. 

Verizon Communications was expected to remain in the spotlight, following reports on Thursday that the British company Vodafone was in talks to sell its 45% stake in Verizon Wireless to its U.S. partner Verizon Communications in what would be the biggest deal in more than a decade. 

Verizon shares slipped 0.15% in after-hour trade. 

Commodity-linked stocks were also likely to be in focus, after a slump in European energy companies, due to the recent downtrend in oil prices. Exxon Mobil and Chevron both dipped 0.03% in extended trading. 

In earnings news, Krispy Kreme Doughnuts saw shares dive 10.98% in pre-market trade, after reporting second-quarter profit that trailed analysts’ estimates as costs increased. 

Across the Atlantic, European stock markets were lower. The EURO STOXX 50 slid 0.68%, France’s CAC 40 declined 0.64%, Germany's DAX slumped 0.62%, while Britain's FTSE 100 retreated 0.49%. 

During the Asian trading session, Hong Kong's Hang Seng Index added 0.12%, while Japan’s Nikkei 225 Index dropped 0.53%. 

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

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