European Central Bank
The dollar took a breather on Thursday following its recent strong gains against key rivals, while sterling steadied after British Prime Minister Theresa May’s government won a no-confidence vote in parliament.
The single currency gained 0.2 percent to $1.1811 EUR= on Thursday, close to three-week highs.
Traders, however, said the euro’s strength much above $1.18 was limited.
Annual inflation in the 19 countries sharing the euro rose to 1.9 percent in May from 1.2 percent in April, well above expectations for a 1.6 percent increase.
Greece’s four biggest banks would lose around 15.5 billion euros worth of their capital by 2020, results of a stress test by the ECB showed.
The European Central Bank is finding it difficult to raise inflation expectations, Bank of Italy Governor Ignazio Visco said on Saturday.
Euro zone businesses started 2018 by increasing activity faster than at any time in well over a decade as new orders surged.
“The rate of change (in the euro) might make the ECB a little uncomfortable,” said State Street’s head of EMEA macro strategy, Tim Graf.
German bond yields hit fresh five-month highs on Friday and the euro hit a three-year high as coalition progress in Germany added to a bond sell-off.
The euro slipped 0.1 percent to $1.2048.
The single currency was also higher against the Japanese yen at 135.64 EURJPY=, reaching levels not seen since late 2015.
The euro hit a six-week high against the dollar on Friday, with investors optimistic about the strength of the euro zone’s recovery after strong economic data this week.
European Central Bank (ECB), is considering to open an investigation into the special assessment of Deutsche Bank's two largest shareholders, Qatar and China.
Sterling was flat on the day at $1.3115, nursing losses after it skidded in the previous session against a backdrop of political turmoil as British lawmakers.
Bank of Italy Governor Ignazio Visco has been reappointed for a second six-year term, despite political attempts to show him the door.
The euro climbed for a third day and stocks slipped to a month low on Thursday.
The euro held near a one-week high on Thursday before a ECB meeting where policymakers are expected to outline a scaling back of bond-purchase.
Hong Kong stocks softened on Thursday after WS pulled back from record highs amid concerns of tighter liquidity in global markets ahead of a ECB meeting.
Dow stays near record high, while European shares ended mixed at their close on Tuesday in anticipation of this week's ECB meeting.
The euro slipped on Monday after posting its biggest weekly rise in a month as traders took profits.