Investing.com - The euro was almost unchanged against the U.S. dollar on Friday, hovering close to eight-month lows as Thursday's inflation data continued to weigh, while a report on the U.S. employment cost index still supported the greenback.
EUR/USD hit 1.3382 during late Asian trade, the session low; the pair subsequently consolidated at 1.3389, dipping 0.01%.
The pair was likely to find support at 1.3298 and resistance at 1.3444, the high of July 29.
The single currency remained under pressure after official data on Thursday showed that the annual rate of inflation in the euro area slowed to a five year low of 0.4% in July from 0.5% in June, adding to pressure on the European Central Bank to implement further stimulus measures to shore up growth and stave off the threat of deflation in the currency bloc.
A separate report showed that the unemployment rate across the euro area fell to 11.5% in June from 11.6% last month. It was the lowest rate since September 2012.
Meanwhile, demand for the dollar was boosted after the Labor Department reported that the U.S. employment cost index rose by 0.7% in the seconf quarter, progressing at the fastest rate since September 2008, after a 0.3% increase in the first quarter.
The report came a day after official data showed that the U.S. economy rebounded more strongly than expected in the second quarter, fuelling speculation over the timing of a possible U.S. rate hike.
The euro was steady against the pound, with EUR/GBP inching up 0.04% to 0.7932.
Later in the day, the U.S. was to release closely watched government data on nonfarm payrolls and the unemployment rate, while the Institute of Supply Management was to release data on manufacturing activity.