AFP - The dollar traded mixed on Friday before the publication of official US economic data, while the yen was also in focus after Japan's leader called for "firm steps" against the currency's recent rise.

In late morning deals here, the European single currency rose to 1.3778 dollars from 1.3678 dollars late in New York on Thursday.

Against the Japanese currency, the dollar fell to 90.36 yen from 90.48 yen on Thursday.

Market were braced for February US retail sales data due Friday, a key gauge of consumer sentiment and the health of the world's biggest economy.

While the outcome will be clouded by the effects of heavy snowstorms during the month, "the market is likely to brush off a surprisingly weak reading by attributing it to one-off weather factors", Barclays Capital said in a note.

Lower auto and gasoline sales are also expected to have curtailed the headline figure.

The data will come one day after markets digested a fall in jobless claims as a positive sign for the US labour market, even if it was smaller than expected, dealers said.

Ahead of Friday's US numbers, traders digested news of strong eurozone industrial output data, which helped to support the euro.

Factory output across continental Europe's core euro currency zone surged ahead in January, rising by 1.7 percent compared to output in the previous month.

Official statistics released by the European Union on Friday showed that industrial production in the 16 countries which share the euro was also up by 1.4 percent compared to 12 months earlier.

The respective figures for the full 27-nation bloc, which also includes eastern industrial powerhouse Poland, gave a 1.8-percent monthly rise and a 1.5 percent annual fall.

"A much stronger than expected January industrial production report from the eurozone injected enthusiasm into the euro and European stock markets this morning," said Jane Foley, an analyst for online trading group Forex.com.

Elsewhere on Friday, markets reacted to rare remarks by Japanese Prime Minister Yukio Hatoyama who called for "firm steps" against the yen's recent rise, which is hurting Japan's exporters.

Hatoyama told a morning parliamentary session that the yen had risen despite "the fact that Japan's economy and industries aren't necessarily strong".

"I think we need to take firm steps against such yen strength," he said, adding that there is a need to "politically cooperate on the world stage".

The prime minister rarely steps forward to comment on foreign exchange, and the move seemed to be an about-face from his position in January that the government should not in principle discuss currency movements.

In London on Friday, the euro was changing hands at 1.3778 dollars against 1.3678 dollars on Thursday, at 124.43 yen (123.77), 0.9084 pounds (0.9080) and 1.4593 Swiss francs (1.4614).

The dollar stood at 90.36 yen (90.48) and 1.0598 Swiss francs (1.0682).

The pound was at 1.5163 dollars (1.5058).

On the London Bullion Market, the price of gold climbed to 1,117.68 dollars an ounce from 1,104 dollars an ounce on Thursday.