Investing.com - The euro slipped against an advancing dollar on Thursday after data revealed the U.S. economy grew at a faster clip in the second quarter than markets were expecting, which firmed expectations that the Federal Reserve will begin hiking interest rates next year.
In U.S. trading, EUR/USD was down 0.15% at 1.3173, up from a session low of 1.3160 and off a high of 1.3220.
The pair was likely to find support at 1.3153, Wednesday's low, and resistance at 1.3297, last Friday's high.
The U.S. economy grew at a revised annualized rate of 4.2%, according to the Commerce Department, up from a preliminary estimate of 4.0% and better than market forecasts for a downward revision to 3.9%.
The upbeat report firmed the dollar by cementing expectations that the Federal Reserve will close its bond-buying program around October and hike benchmark interest rates some time in 2015, possibly sooner than once anticipated.
Elsewhere, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending Aug. 22 declined by 1,000 to 298,000 from the previous week’s revised total of 299,000.
Analysts were expecting the figure to rise by 1,000 instead of contract by that amount, which gave the greenback added support.
A separate report showed that U.S. pending home sales increased by 3.3% last month, beating expectations for a 0.5% rise. June's figure was revised to a 1.3% drop from a previously estimated decline of 1.1%.
The euro, meanwhile, continued to see residual support after German Finance Minister Wolfgang Schauble said comments made by European Central Bank President Mario Draghi suggesting fiscal policy could spur growth were "overinterpreted."
Draghi said last week that policy makers are ready to take more unconventional action if needed to stimulate a sluggish euro zone economy, which left many pondering the possibility that fiscal stimulus could accompany loose monetary policies to jumpstart European recovery.
Elsewhere, the euro was down against the pound, with EUR/GBP down 0.16% at 0.7948, and down against the yen, with EUR/JPY down 0.24% at 136.72.
On Friday, expect the pair to move on euro zone inflation and unemployment data as well as on U.S. personal spending and income reports, a Chicago-area factory gauge and consumer sentiment figures.