Forex – Dollar Set for Weekly Gain as Euro Plunges on Growth Concerns

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Forex - Dollar Set for Weekly Gain as Euro Plunges on Growth Concerns

Investing.com – The dollar was set to record a weekly gain against its rivals Friday on the back of a sharp downtick in the euro with signs of weaker eurozone economic growth.

The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.25% to 96.82.

Business growth in the eurozone slowed this month, as a slowing global economy and an ongoing United States-led trade war weighed, a survey showed on Friday.

Sentiment on eurozone growth was further soiled by data showing German private-sector growth slowed to its lowest level in nearly four years, pressuring the euro sharply lower as the single currency remained on track to end the week lower.

The disappointing batch of data from the bloc will likely fuel concerns from European Central Bank policymakers, who are expected wind down their €2.6 trillion asset purchase program at the end of the year.

EUR/USD fell 0.60% to $1.1335.

GBP/USD fell 0.51% to $1.2811 ahead of last-ditch talks between UK Prime Minister Theresa May and lawmakers in Brussels including President Jean Claude Junker on Saturday as both sides attempt to finalize a Brexit deal.

USD/CAD rose 0.14% to C$1.3210 after a plunge in oil prices to a more than a one-year low offset gains in the loonie, which had followed upbeat Canada inflation data.

USD/JPY fell 0.09% to Y112.86 as the selloff on Wall Street drew support for safe-haven yen, limiting gains in the pair.

— Reuters contributed to this report.

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