Euro Muted After Eurozone Inflation Data

The euro showed muted trading against its major counterparts in the European session on Friday, after a data showed that Eurozone inflation eased more than estimated in February.

Final data from Eurostat showed that inflation slowed to revised 1.1 percent from 1.3 percent in January. A similar slower growth was last seen in December 2016. The flash estimate showed an annual inflation of 1.2 percent for February.

Inflation continues to stay below the European Central Bank's target of 'below, but close to 2 percent'.

Core inflation that excludes energy, food, alcohol and tobacco, held steady at 1 percent in February. The rate came in line with the estimate released on February 28.

On a monthly basis, the harmonized index of consumer prices rose 0.2 percent in February.

European shares were higher, even as trade-war worries persisted and reports suggested that special counsel Robert Mueller has subpoenaed U.S. President Donald Trump's businesses, adding to the sense of continued political uncertainty in the U.S.

Meanwhile, the White House denied reports that Trump has decided to remove White House national security adviser H.R. McMaster from the administration.

The euro showed mixed trading against its major rivals in the Asian session. While it held steady against the pound and the franc, it dropped against the yen and the greenback.

The 19-nation currency held steady against the franc, after having fallen to 1.1693 at 4:15 am ET. The pair closed Thursday's trading at 1.1707.

The euro bounced off to 1.2336 against the greenback, from a 6-day low of 1.2295 hit at 9:30 pm ET. The euro is seen finding support around the 1.26 level.

Following an 11-day low of 130.13 hit at 3:45 am ET, the single currency held steady against its Japanese counterpart. On the downside, 130.85 is likely seen as the next support level for the euro.

Japan's government maintained its economic assessment for March, saying the economy is recovering at a moderate pace.

In its monthly economic report, the Cabinet Office said the economy is expected to continue recovering, supported by the effects of the policies, while employment and income situation is improving.

The euro slid to more than a 2-week low of 0.8816 against the pound at 4:45 am ET and moved sideways since then. The pair was valued at 0.8828 when it closed deals on Thursday.

Looking ahead, Canada manufacturing sales for January, U.S. housing starts, building permits and industrial production, all for February and University of Michigan's preliminary consumer sentiment index for March are scheduled for release in the New York session.