Investing.com - The euro erased gains against the U.S. dollar on Friday, despite tepid U.S. economic reports as earlier data from the euro zone failed to boost confidence in the bloc's economic recovery.
EUR/USD pulled away from 1.1364, the session high, to hold steady at 1.1308 during U.S. morning trade.
The pair was likely to find support at 1.1223, the high of January 27 and resistance at 1.1421, the high of January 27.
In a revised report, the University of Michigan said its consumer sentiment index ticked down to 98.1 in January from 98.2 the previous month. Analysts had expected the index to remain unchanged this month.
The UoM also said its inflation expectations for the next 12 months rose to 2.5% this month from 2.4% in December.
A separate report showed that the Chicago purchasing managers' index rose to 59.4 this month from 58.8 in December, whose figure was revised up from a previously estimated reading of 58.3. Analysts had expected the index to fall to 57.5 in January.
The data came after Bureau of Economic Analysis said U.S. gross domestic product rose 2.6% in the last quarter of 2014, down from a previous estimate of 3.0% and from a growth rate of 5.0% in the three months to September.
Earlier Friday, Eurostat reported that the euro zone’s unemployment rate ticked down to 11.4% in December from 11.5% the previous month, confounding expectations for the rate to remain unchanged.
In a separate report, Eurostat said that the annual rate of euro zone inflation fell by 0.6% in January, after a 0.2% slip in December. Economists had expected an annual decline of 0.5%.
Core inflation, which strips out volatile measures such as food and energy costs, rose 0.5% on a year-over-year basis, but was still well below the European Central Bank's target of close to, but just under 2%.
In addition, official data showed that Spanish GDP rose 0.7% in the fourth quarter of 2014, above expectations for a 0.6% gain and up from a growth rate of 0.5% in the previous quarter, while another report showed that German retail sales gained 0.2% last month, disappointing expectations for a 0.3% rise.
The euro was also higher against the pound, with EUR/GBP edging up 0.13% to 0.7521.
In the U.K., data showed that U.K. net lending to individuals fell to £2.2 billion in December from a revised £3.1 billion in November.
Data also showed that U.K. mortgage approvals rose by 60,280 last month after a downwardly revised 58,960 increase in November, compared to expectations for a 59,000 rise.
In addition, the U.K. Gfk consumer confidence index improved to 1 this month from minus 4 in December, compared to expectations for a reading of minus 2.