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    Dollar edged higher against the euro, while sterling under pressure

    The dollar index posted a modest weekly gain on Friday, having pulled back from one-month lows reached earlier in the week, as the euro was under pressure and the sterling was driven by sentiment over the upcoming Brexit referendum.

    The U.S. dollar index inched up 0.3% to 94.185, bouncing off Wednesday’s bottom of 93.425, its weakest level since the 11th May, and was up 0.2% for the week.

    The euro fell 0.2% to 1.1298, drifting away from the previous session’s one-month peak of 1.1416. The single currency dropped 0.6% for the week.

    The euro also posted a three-year low of 120.31 against the Japanese yen on Thursday. The cross was last down 0.2% at 120.95, while losing 0.1% for the week.

    The greenback slid 0.1% at 107.02 against the yen, but was still up 0.4% for a week that saw it reach 106.26 on Thursday, its lowest level since the 4th of May.  

    The Fed is scheduled to hold a two-day policy meeting on Wednesday, while the BoJ concludes its own two-day meeting on Thursday. Industrial production and retail sales reports from China due on Monday could also set the pace for Asian trading in the coming week.
    The sterling stayed under a cloud on fears over the British referendum, pushing the cable down to 1.4450 and well below this week’s 1.4664 high. The pound posted extreme movements in recent sessions driven by opinion polls and other developments ahead of the upcoming referendum on the country’s E.U. membership.

    With the eurozone and U.K. in focus overnight, the greenback marked a small recovery. Disappointing payrolls print a week ago continued to weigh on the dollar, by convincing market watchers that the Federal Reserve will refrain from raising rates as early as next week.

    A new string of U.S. economic reports released on Thursday was more optimistic, with a soar in wholesale inventories in April that urged analysts to upgrade their second-quarter growth forecasts.

    One of the week’s best performers was the Kiwi, which marked a broad rally after the RBNZ announced its decision on Thursday to leave interest rates unchanged and that it was reluctant to cut them again. The New Zealand dollar was last up 0.2% at 0.7097 for the week.

    Later in the day, the U.S. is to round up the week with data on consumer sentiment

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