The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.33% at 94.76, after seven-week lows of last Wednesday. Meanwhile, the index still ended the week down 0.31% for a third week in a row.
In the late trade, EUR/USD retreated 0.35% to 1.1347, having hit a seven-week high of 1.1494 on Thursday, and ended the week 0.18% lower. However on Thursday, turned sharply lower after ECB governing council member Ewald Nowotny said additional measures to boost price growth in the euro zone are needed.
Another major event of the previous week was on Wednesday, when the dollar fell after U.S. retail sales numbers were seen and limited the chances for Fed lift off in the coming months.
On Thursday, industrial output slipped 0.2 percent, as many analysts forecast. The August reading was revised up to 0.1 percent dip from a previously reported 0.4 percent decline, the Federal Reserve said, adding that core consumer prices, which exclude food and energy costs, increased by 0.2%, above expectations for a gain of 0.1%.
Data on Friday confirmed that the rate of inflation in the euro area turned negative in September for the first time since the ECB launched its trillion euro asset purchase program in March, with the consumer price index down 0.1% on a year-over-year basis.
Furthermore, analysts had expected jobless claims to rise by 8,000 to 270,000, but the U.S. Department of Labor reported on Thursday, that the number of individuals filing for initial jobless benefits in the week ending (October 10, 2015) decreased by 7,000 to 255,000 from the previous week’s total of 262,000. As a result the dollar strengthened broadly and euro’s losses were held in check.
The dollar was also higher against the Japanese yen ant the Swiss franc on Friday. Rebounding from Thursday’s seven-week trough of 118.05, USD/JPY rose 0.46% to 119.43. The pair still ended the week down 0.63%. USD/CHF was up 0.41% to 9543 in late trade. Sterling pound against the US dollar ended the day little changed at 1.5440.
In the week ahead, investors will be focusing on the outcome of Thursday’s ECB meeting.
Attention will also be turned to Friday’s eurozone survey data on manufacturing and service sector activity.