Investing.com - The euro rose against the dollar on Thursday after data revealed the U.S. economy contracted more than expected during the first quarter, though nuggets of positive numbers in the report cushioned the greenback''s losses.
In U.S. trading, EUR/USD was up 0.10% at 1.3606, up from a session low of 1.3586 and off a high of 1.3626.
The pair was likely to find support at 1.3586, the earlier low, and resistance at 1.3668, Tuesday''s high.
The Bureau of Economic Analysis revealed earlier that the U.S. gross domestic product contracted 1.0% in the first quarter, after a preliminary estimate showed growth of 0.1%.
Market expectations had been for a 0.5% contraction. It was the first decline in U.S. GDP since the first quarter of 2011, and the dollar softened on the news, reminding investors that even when the Federal Reserve winds down stimulus programs, rate hikes won''t come for some time afterwards.
Still, the report did contain some positive data.
Consumer spending, which drives more than two-thirds of U.S. economic activity, increased by 3.1%, up from the preliminary estimate of 3.0%.
Sentiments that rough winter weather bruised the economy in the first three months of the year as opposed to a major drop in demand supported the greenback as well.
Elsewhere, the National Association of Realtors reported that its pending home sales index rose 0.4% in April, missing expectations for a 1% gain.
Separately, the Department of Labor said the number of individuals filing for unemployment assistance in the U.S. last week fell by 27,000 to 300,000, exceeding expectations for a decline of 9,000.
The euro was up against the pound, with EUR/GBP up 0.06% at 0.8139, and down against the yen, with EUR/JPY down 0.14% at 138.22.
On Friday in the euro zone, Germany is to publish a report on retail sales. Elsewhere in Europe, Switzerland is to publish its KOF economic barometer.
The U.S. is to round up the week with a report on personal income and expenditure as well as revised data from the University of Michigan on consumer sentiment.