LONDON (AFX) - The euro was steady in early trade as yesterday's strong US data was offset by a slump in US equity prices prior to last night's close, dealers said. "The dollar took a bashing late in the New York session on jitters in the equity markets," Will Rugg of Standard & Poor's MMS said. Rugg said yesterday's strong US data also ignited concerns about an imminent rate hike by the Federal Reserve. However, he said more strong US data later in the day could drag the dollar back into positive territory. Today's US data bonanza will kick off at 1.30 pm with the Jan consumer spending and personal income, followed by the closely-watched University of Michigan final Feb consumer sentiment at 2.45 pm, with the Jan construction spending and Jan ISM index both due at 3.00 pm. Michael Klawitter at West LB Research said he expects today's data to be "be supportive to a steady recovery scenario". However, following yesterday's experience he cautioned that it is unlikely to push the dollar higher. Sterling was firmer, staging a rebound after Bank of England governor Sir Eddie George and Monetary Policy Committee member Steve Nickell attempted to talk it down. "They were trying to talk it lower yesterday... but they were just statements of the obvious," Rugg said. UK recovery hopes were also fuelled by George's comments that the UK economy is set to grow from a low point at the end of last year, as he appeared before the Commons Treasury Select Committee yesterday. The yen was slightly firmer, propped up by repatriation flows, as investors remained unmoved by the government's anti-climatic anti-deflation package released on Wednesday after widespread leaks in the media. The Bank of Japan failed to inspire the market with its promise of limitless liquidity over the fiscal year-end. "They need to do more than these token gestures," Rugg said. Rugg said the yen is finding some support from firm equities in Tokyo, but he cautioned that the rally in stock prices is largely due to the government's move to curb investors "going short" and is therefore unsustainable. "The government is manipulating the market and using restrictive practices," Rugg said, adding that the practices are likely to scare off foreign investors. The yen is set to weaken further as long as the government continues to "sit on its hands", he said.