Forex - EUR/USD edges higher after UoM report

The euro edged higher against the U.S. dollar on Friday, as disappointing U.S. consumer sentiment data dampened demand for the greenback, although Thursday's upbeat economic reports still lent some support.

Euro rises vs. dollar, U.S. consumer sentiment data disappoints

EUR/USD hit 1.3770 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.3765, adding 0.16%.

The pair was likely to find support at 1.3662, the low of February 26 and resistance at 1.3823, the high of March 26.

In a revised report, the University of Michigan said its consumer sentiment index ticked up to 80.0 in March, from a reading of 79.9 the previous month. Analysts had expected the index to rise to 80.5 this month.

Earlier Friday, official data showed that U.S. personal spending rose 0.3% in February, in line with expectations, Personal spending in January was revised down to a 0.2% gain from a previously estimated 0.4% increase.

A separate report showed that the core U.S. personal consumption expenditures price index remained unchanged at 0.1% last month, in line with expectations.

The dollar had strengthened broadly on Thursday after economic reports showed that U.S. jobless claims fell to the lowest level since late November last week and that U.S. economic fourth quarter growth was revised higher.

The upbeat data added to hopes that the slowdown in U.S. economic activity seen at the start of the year would be temporary.

In the euro zone, preliminary data showed that German consumer price inflation rose 0.3% in March, less than the expected 0.4% increase, after a 0.5% gain in February.

Data also showed that French consumer spending rose 0.1% in February, less than the expected 0.8% increase, after a 2.1% decline the previous month.

The euro was higher against the pound, with EUR/GBP edging up 0.10% to 0.8280.

Also Friday, data showed that the U.K. gross domestic product rose by 0.7% in the fourth quarter, in line with expectations.

A separate report showed that the U.K. current account deficit narrowed to £22.4 billion in the fourth quarter, from £22.8 billion in third quarter, whose figure was revised down from a previously estimated deficit of £20.7 billion.

Analysts had expected the current account deficit to narrow to £14 billion in the fourth quarter.