Investing.com - The euro was little changed against the dollar and the yen on Thursday after preliminary data showed that the annual rate of euro zone inflation slowed in July and another report showed that the region’s unemployment rate fell to an eleven-and-a-half month low in June.
EUR/USD was trading at 1.3395 following the release of the data, not far from the eight-month trough of 1.3366 reached on Wednesday.
The pair was likely to find support at around 1.3350 and resistance at 1.3425.
The single currency showed little reaction after Eurostat reported that the annual rate of inflation in the euro area slowed to a five year low of 0.4% in July from 0.5% in June. Economists had expected an unchanged reading.
Falling energy prices, as well as declines in the cost of food, alcohol and tobacco pushed down the inflation rate.
Core inflation, which excludes food and energy costs was unchanged at 0.8%.
The weak data added to pressure on the European Central Bank to implement further stimulus measures to shore up growth and stave off the threat of deflation in the currency bloc.
At the same time, official data showed that the unemployment rate across the euro area fell to 11.5% in June from 11.6% in May. It was the lowest rate since September 2012.
Demand for the dollar continued to be underpinned after official data on Wednesday showed that the U.S. economy expanded at an annual rate of 4.0% in the three months to June, outstripping forecasts of 3.0%.
In addition, the contraction in the first quarter was revised to 2.1% from a previously reported 2.9% contraction.
The dollar pared back some gains after the Federal Reserve's latest rate statement said that considerable slack still remains in the labor market, despite the recent improvement in jobs growth.
Investors were looking ahead to the U.S. nonfarm payrolls report for July on Friday for the latest indication of the strength of the recovery in the labor market.
Elsewhere, the euro was almost unchanged against the yen, with EUR/JPY at 137.65.