EUR/USD Steady at 1.3710 as U.S. Yields Fall

The euro was back in familiar territory against the dollar early on Friday, having staged a surprisingly strong rebound from a 2-1/2 month trough as investors booked profits on bearish positions ahead of the weekend.

The common currency stood at $1.3714 after closing nearly flat in New York. It had fallen as far as $1.3648 in response to data showing the euro zone grew much less than expected at the start of the year.

“EUR/USD rebounded from the lows thanks to the sharp drop in U.S. yields but we suspect that expectations of ECB easing will keep the euro trading with a bearish bias,” analysts at BNP Paribas wrote in a note to clients.

Reuters

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