Investing.com - The euro erased gains against the U.S. dollar on Friday, after data showed that U.S. consumer sentiment rose the most since July 2007 this month.
EUR/USD pulled away from 1.2836, the session high, to hit 1.2765 during U.S. morning trade, down 0.34%.
The pair was likely to find support at 1.2623, the low of October 15 and resistance at 1.2886, the high of October 15.
In a preliminary report, the University of Michigan said its consumer sentiment index rose to a seven-year high of 86.4 this month from 84.6 in September. Analysts had expected the index to slip to 84.1 in October.
Earlier Friday, official data showed that U.S. building permits rose 1.5% to 1.018 million units last month, disappointing expectations for an increase of 2.8% to 1.0.29 million units, after a 5.1% drop to 1.003 million units in August.
The report also showed that U.S. housing starts rose 6.3% in September to 1.017 million units, beating expectations for a 4.8% gain. Housing starts for August were revised to a 12.8% fall from a previously estimated 14.4% decline.
Meanwhile, the euro remained under pressure amid growing concerns over the threat of deflation in the euro zone after revised data on Thursday showed that bloc's consumer price inflation rose by 0.3% in September, in line with expectations.
The rate has now been below 1% for 12 straight months, well under the European Central Bank's target of near but just under 2%.
The euro was also lower against the pound, with EUR/GBP edging down 0.21% to 0.7945.