Euro Lower As Eurozone Inflation Eases

(RTTNews) - The euro was subdued on Friday, after a data showed that the region's inflation fell more than expected in June.

Eurozone consumer inflation fell to 5.5 percent in June from 6.1 percent in May, according to preliminary data from the European Union's statistics agency Eurostat.

Core inflation rose slightly to 5.4 percent from 5.3 percent in May.

At the same time, the region's unemployment rate held steady at 6.5 percent in May, matching expectations.

Investors await a U.S. report on personal income and spending for May, which includes readings on inflation said to be preferred by the Federal Reserve.

The euro fell to a fresh 2-week low of 1.0835 against the greenback and a 2-day low of 1.7816 against the kiwi, off its early highs of 1.0875 and 1.7932, respectively. The next possible support for the currency is seen around 1.06 against the greenback and 1.74 against the kiwi.

The euro dropped to 3-day lows of 0.8576 against the pound and 156.67 against the yen, from its early highs of 0.8617 and 157.58, respectively. The currency may locate support around 0.84 against the pound and 146.00 against the yen.

The euro weakened to 3-day lows of 1.4365 against the loonie and 1.6365 against the aussie, down from its prior highs of 1.4413 and 1.6461, respectively. The currency is likely to face support around 1.42 against the loonie and 1.61 against the aussie.

In contrast, the euro rose to 0.9779 against the franc, off an early 3-day low of 0.9761. The euro is seen finding resistance around the 0.99 level.

Looking ahead, Canada GDP data for April, U.S. personal income and spending data for May and University of Michigan's final consumer sentiment index for June are slated for release in the New York session.