Forexpros – The euro fell against the dollar on Friday as soft Chinese export data stoked fears the global economy is cooling.
Cuts to European growth forecasts also sent the euro falling though it did regain some strength.
In U.S. trading on Friday, EUR/USD was trading down 0.09% at 1.2294, up from a low of 1.2242 and off from a high of 1.2316.
The pair was likely to find support at 1.2242, the earlier low, and resistance at 1.2316, the earlier high.
China reported earlier that its trade surplus narrowed unexpectedly in July, dropping to USD25.1 billion from a USD31.7 billion surplus.
Economists were expecting a USD35.1 billion surplus.
Soft demand for Chinese exports sent shudders across markets worldwide on fears the global economy may be battling stronger headwinds than once thought.
Meanwhile in Europe, the European Central Bank on Thursday trimmed its forecast for economic growth to 0.6% in 2013, down from 1% previously.
The ECB also forecast a 0.3% contraction in growth this year, slightly worse than its previous forecast for a 0.2% contraction.
The bearish data, however, cemented views that central banks around the world will take steps to stimulate their respective economies with monetary policy tools, which tend to weaken safe-haven currencies like the dollar and send higher-yielding currencies and stocks rising.
Federal Reserve officials have said they cannot rule out rolling out a third round of asset purchases from banks, a stimulus tool known as quantitative easing that pumps liquidity into the economy to spur recovery, weakening the greenback in the process.
Such sentiment sent the euro paring losses against the U.S. dollar.
The euro, meanwhile, was down against the pound and down against the yen, with EUR/GBP down 0.29% at 0.7847, and EUR/JPY trading down 0.49% at 96.21.
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