Euro trims losses after U.S. data, but eurozone reports continue to weigh

On Friday the euro rose versus the greenback after the release of downbeat U.S. data. However, gains were capped as negative economic reports from the eurozone continued to pressure the single currency.

EUR/USD pulled away from 1.0925, the session low, to reach 1.0960 during U.S. morning trade, lower just 0.21%.

Data released Friday signaled U.S. new home sales climbed by 482.000 in June, below expectations for an increase of 546.000.

In May, new home sales climbed by 517.000 - the figure was revised from a previously estimated gain of 546.000.

A separate report presented by research group Markit said that its U.S. flash manufacturing purchasing managers' index rose to 53.8 this month from 53.6 in June, beating expectations for an unchanged reading.

However, sentiment for the dollar remained supported by data on Thursday which signaled the number of individuals filing for initial jobless benefits in the U.S. in the week ending July 18 dropped to a 40-year low of 255,000 from the previous week’s total of 281,000, adding to expectations for a soon U.S. rate hike.

Elsewhere in Europe, the data released by Markit indicated that Germany's preliminary manufacturing PMI declined to 51.5 this month from 51.9 in June, disappointing expectations for an unchanged reading.

Germany's services PMI slid to 53.7 in July from 53.8 in June, compared to expectations for a rise to 53.9.

France's preliminary manufacturing PMI fell to 49.6 this month from 50.7 in June, while the services PMI declined to 52.0 from 54.1, data showed.

For the entire euro zone, the research group signaled the composite PMI, combining the manufacturing and the service sectors, slid to 53.7 in July from 54.2 the previous month.