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Forex - EUR/USD edges higher, but gains limited

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Investing.com - The euro edged higher against the U.S. dollar on Friday, but remained under pressure as uncertainty over the outlook for growth in the euro zone continued to weigh.

EUR/USD hit 1.3041 during late Asian trade, the pair's highest since March 13; the pair subsequently consolidated at 1.3035, adding 0.23%.

The pair was likely to find support at 1.2984, the low of March 11 and resistance at 1.3118, the high of March 7.

The euro came under pressure after official data on Thursday showed that employment in the euro zone dropped 0.3% in the fourth quarter from the third, reinforcing concerns over the economic outlook for the region.

Separately, the European Central Bank said, in its monthly bulletin, that the euro zone economy is expected to recover gradually later this year, but risks to the recovery remained if governments failed to implement structural reforms.

Meanwhile, the dollar remained supported after the Department of Labor said the number of people who filed for unemployment assistance in the U.S. fell by 10,000 to a seasonally adjusted 332,000, last week compared to expectations for an increase of 8,000 to 350,000.

The unexpectedly strong data, together with recent stronger-than-forecast data on nonfarm payrolls and retail sales fuelled optimism over the durability of the U.S. economic recovery.

The euro was lower against the pound with EUR/GBP slipping 0.12%, to hit 0.8614.

Later in the day, European Union leaders were to hold the second day of an economic summit in Brussels. Meanwhile, the euro zone was to publish official data on consumer price inflation.

The U.S. was to produce official data on consumer inflation and preliminary data from the University of Michigan on consumer sentiment, followed by reports data on industrial production, and manufacturing activity in New York state.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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