Early trade in New York: Euro gains versus dollar in first quarter

The euro advanced in the first quarter, boosted by expectations of eurozone rate hikes following Thursday's strong inflation numbers, but gains could stall in the next few weeks due to nagging peripheral debt concerns.
Technical indicators suggested the euro was in the midst of a correction to the downside against the dollar after gaining 6 percent in 27 days from the currency's low of $1.3428 on February 14 to last week's high at $1.4249.
The $1.4249 level is the pair's resistance, and if that goes, euro bulls could target $1.4283, the November 4 peak. In early afternoon trading, the euro rose 0.5 percent to $1.4194. It has gained more than 6 percent against the dollar and 8.5 percent against the yen in the first quarter, largely due to the outlook that the ECB would raise rates well before the Federal Reserve and the Bank of Japan.