The euro showed almost insignificant reaction against the US dollar on Friday, following the release of positive consumer sentiment data from the United States, through the course of a thin trade.
EUR/USD reached a session high at 1.3296 at 14:02 GMT, after which consolidation followed at 1.3270. Support was likely to be received at July 24th low, 1.3177, while resistance was to be encountered at June 11th high, 1.3318.
Minutes ago the University of Michigan reported that US consumer confidence rose to a six-year high in July, pointing increased optimism among US consumers regarding economic situation in the country, although it is expected that US GDP will expand at a slower rate during the next year. The index of consumer sentiment rose to a reading of 85.1 in July from 83.9 in June, exceeding preliminary estimates of a value of 84.0. Julys reading was the highest point reached since July 2007. Economic prospects were defined as less favorable, as US households with lower income were more optimistic than households with higher income. Additionally, inflationary expectations decreased to 3.1% in July from 3.3% a month ago. This report was released amid speculation over the future of Federal Reserve Banks Quantitative Easing.
Meanwhile, the euro remained steady against the British pound, as EUR/GBP cross ticked up 0.02% to trade at 0.8631 at 14:40 GMT. On the other hand, the euro tumbled against the Japanese yen, as EUR/JPY pair erased 1.12%, trading at 130.37 at 14:45 GMT.
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