The Euro strengthened against the U.S. dollar on Friday, as dollar was as pressured by expectations the Federal Reserve will start cutting interest rates at a monetary policy meeting later this month. Against a basket of other currencies, the dollar fell 0.1% to 97.004, posting its worst daily loss against the yen and Swiss franc in more than three weeks. The dollar briefly trimmed losses after U.S. data showed producer prices rose slightly in June, up 0.1% following a similar gain in May. On the other hand, sterling strengthened against dollar, as bets that BOE could raise rates supported sterling across the board. BOE official Gertjan Vlieghe said the central bank might need to cut rates almost to zero in the event of a no-deal Brexit and it was not clear how long it would take for them to rise again. Vlieghe also said that a scenario in which the BoE cuts rates “is more possible” than a scenario in which it raises rates.
It’s a big week ahead, with key stats, and geopolitical risk to provide the majors with direction through the week.