Investing.com - The euro edged higher against the U.S. dollar on Friday, after the release of upbeat U.S. consumer sentiment data, although gains were expected to remain limited by concerns over escalating tensions in Ukraine.
EUR/USD hit 1.3848 during U.S. morning trade, the pair''s highest since Wednesday; the pair subsequently consolidated at 1.3841, adding 0.08%.
The pair was likely to find support at 1.3792, Thursday''s low and resistance at 1.3884, the high of April 13.
In a revised report, the University of Michigan said its consumer sentiment index rose to a nine-month high of 84.1 in April, from a reading of 82.6 in March. Analysts had expected the index to rise to 83.0 this month.
The University of Michigan also said inflation expectations for the next 12 months ticked up to 3.2% in April, from the previous month''s estimate of 3.1%.
Meanwhile, market sentiment remained fragile amid renewed tensions in Eastern Europe, after Ukrainian troops killed several pro-Russian rebels on Thursday, and Russian troops started military exercises close to its border with Ukraine.
In response, U.S. Secretary of State John Kerry said Washington was drawing closer to imposing more sanctions on Moscow.
The single currency also remained under pressure after European Central Bank President Mario Draghi on Thursday said the euro exchange rate is an "increasingly important factor" in monetary policy.
The exchange rate is not a policy target in itself, the ECB chief said, but the bank’s monetary policy stance could be affected by a continued appreciation in the currency.
He also said the ECB could launch a "broad-based" asset purchase program if the medium-term inflation outlook worsened.
The euro was little changed against the pound, with EUR/GBP inching up 0.01% to 0.8232.
Also Friday, official data showed that U.K. retail sales rose 0.1% in March, beaing expectations for a 0.4% fall. Retail sales in February were revised down to a 1.3% increase from a previously estimated 1.7% gain.
A separate report showed that U.K. mortgage approvals rose by 45,900 last month, compared to expectations for an increase of 48,900. February''s mortgage approvals were revised down to a 47,200 rise from a previously estimated 47,600 increase.
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