Investing.com - The euro erased gains against the U.S. dollar on Thursday, reapproaching 11-month lows after data showed that German consumer price inflation came out in line with expectations this month, while markets eyed upcoming U.S. economic reports.
EUR/USD pulled away from 1.3220, the pair's highest since August 24, to hit 1.3183 during European afternoon trade, edging down 0.08%.
The pair was likely to find support at 1.3153, Wednesday's low and an 11-month low and resistance at 1.3243, the high of August 24.
Preliminary data showed that German consumer price inflation was flat in August, in line with expectations after a 0.3% rise the previous month.
Data also showed that the number of unemployed people in Germany rose by 2,000 last month, confounding expectations for a decline of 5,000. The change in the number of unemployed people for June was revised to a 11,000 drop from a previously estimated 12,000 decline.
Separately, a preliminary report showed that consumer price inflation in Spain fell at an annualized rate of 0.5% this month, compared to expectations for a 0.2% downtick, after a 0.3% fall in July.
The euro had found some support earlier, as expectations for fresh stimulus measures by the European Central Bank slightly eased after German Finance Minister Wolfgang Schauble said on Wednesday that ECB President Mario Draghi's recent comments on the matter have been "over-interpreted."
Meanwhile, investors were turning their attention to upcoming data on U.S. second quarter GDP and the weekly government report on initial jobless claims for further indications on the strength of the U.S. economic recovery.
The euro was lower against the pound, with EUR/GBP slipping 0.16% to 0.7947.
Also Thursday, the Confederation of British Industry reported that realized sales rose to a six-month high of 37 this month, from a reading of 21 in July, compared to expectations for a rise to 27.
Later in the day, the U.S. was to release revised data on second quarter GDP, as well as the weekly government report on initial jobless claims and data on pending home sales for July.