Investing.com - The euro dropped to fresh multi-month lows against the U.S. dollar on Friday, hovering close to a two-year trough as positive U.S. economic growth data lent further support to the greenback.
EUR/USD hit 1.2691 during U.S. morning trade, the pair's lowest since November 2012; the pair subsequently consolidated at 1.2703, declining 0.37%.
The pair was likely to find support at 1.2500 level and resistance at 1.2864, the high of September 24.
In a revised report, the University of Michigan said its consumer sentiment index remained unchanged at 84.6 this month, compared to expectations for an uptick to 84.7.
The data came after the Commerce Department said U.S. gross domestic product expanded at an annual rate of 4.6% in the second quarter, in line with the consensus forecast, after contracting by 2.1% in the first three months of the year.
U.S. second quarter GDP was initially reported to have increased by 4.2%.
The positive data added to expectations for an early U.S. rate hike, after Dallas Federal Reserve President Richard Fisher said that the U.S. central bank may start raising interest rates around the spring of 2015.
The euro remained under pressure after data earlier showed that the Gfk German consumer climate index ticked down to 8.3 this month, from a reading of 8.6 in August. Analysts had expected the index to slip to 8.5.
The report added to concerns over the outlook for growth in the euro zone's biggest economy as data on Wednesday showed that Germany's Ifo business confidence index deteriorated for the fifth successive month in September.
The single currency dropped to nearly two-year lows against the dollar on Thursday after European Central Bank President Mario Draghi reiterated the bank's commitment to act with more policy measures to boost inflation in the euro zone.
"We stand ready to use additional unconventional instruments within our mandate, and alter the size or composition of our unconventional interventions should it become necessary to further address risks of a too prolonged period of low inflation," Draghi said.
The euro was near two-year lows against the pound, with EUR/GBP slipping 0.10% to 0.7807.