Investing.com

Investing.com - The euro dropped against the dollar on Friday after euro zone inflation data missed expectations, while solid consumer sentiment data in the U.S. bolstered the greenback.



In U.S. trading, EUR/USD was trading at 1.3497, down 0.43%, up from a session low of 1.3480 and off a high of 1.3568.



The pair was likely to find support at 1.3399, the low from Nov. 21, and resistance at 1.3568, the earlier high.



The euro area''s flash consumer price index rose 0.7% on year in January, according Eurostat, missing market calls for a 0.9% reading, which softened the single currency.



Core inflation, stripped of volatile food, energy, alcohol and tobacco items, rose 0.8%, in line with expectations.



Also in Europe, the euro area''s unemployment rate came in at 12.0% in November, unchanged from October though better than market calls for a 12.1% reading.



Meanwhile in the U.S., the Thomson Reuters/University of Michigan final index of sentiment came in at 81.2 in January, beating expectations for a 81.0 reading.



Also in the U.S. official data revealed consumer spending rose 0.4% in December, beating expectations for a 0.2% reading though personal income came in unchanged, missing expectations for a 0.0% gain.



The euro was down against the pound, with EUR/GBP falling 0.19% to 0.8207, and down against the yen, with EUR/JPY trading down 0.90% at 137.98.











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