Investing.com - The euro slipped lower against the U.S. dollar on Friday, pulling away from a three-month peak as the greenback regained some strength ahead of a flurry of U.S. economic reports due to be released later in te day.
EUR/USD hit 1.1376 during late Asian trade, the session low; the pair subsequently consolidated at 1.1373, down 0.32%.
The pair was likely to find support at 1.1201, the low of May 13 and resistance at 1.1488, the high of February 6.
On Thursday, the Department of Labor said the number of Americans filing claims for initial jobless benefits in the week ending May 9 fell by 1,000 to 264,000, coming in just above the 15 year low reached two weeks ago, indicating that the recovery in the labor market is continuing.
But the data was overshadowed by another report showing that the U.S. producer price index fell 0.4% last month and was 1.3% lower on a year-over-year basis, the largest drop since 2010.
The weak inflation data reinforced expectations that the Federal Reserve will hold off on raising interest rates until the economic recovery is on a stronger footing.
The single currency had strengthened broadly after German and U.S. bund yields rose to the highest level in five months on Thursday as a broad based selloff in global bond markets continued.
German bund yields act as benchmarks for European financial markets and higher yields push the euro higher against the dollar. Yields rise as prices fall.
The euro was also lower against the pound, with EUR/GBP shedding 0.21% to 0.7209.
Later in the day, the U.S. was to release reports on industrial production, manufacturing activity in the New York region and consumer sentiment.