Euro gains ground on short-covering

Euro tilted higher against dollar in European trade following a spate of data from the euro zone and amid a lack thereof from the US, as markets continue to assess the developments in Ukraine.

As of 09:22 GMT, EUR/USD rose 0.04% to 1.0178, with a session-high at 1.0178.

Earlier data showed an index tracking consumer sentiment in the euro zone declined to 25.2 from 26.4 in July. 

The euro zone continues to suffer from the Ukrainian war and shortage of natural gas supplies, amid political pressure from both Russia and the EU.

Italy faces another crisis with Moody's credit agency cutting down Italy's sovereign rating to negative due to ongoing economic struggle and political instability. 

The Italian financial ministry dismissed the decision by Moody's and asserted the Italian economy remains on its feet, and that all European economies face pressures. 

The ministry announced reform plans for the financial and energy sectors, which will be implemented quickly following the upcoming vote. 

From the US, the unemployment rate fell to February 2020 lows at 3.5%, while the economy added more jobs than expected last month, paving the way for a 0.75% rate hike by the Federal Reserve in September.