Euro falls, set for fifth straight weekly drop as oil prices rise
UUP•The euro fell 0.1% to $1.1198 and was down about 0.5% for the week, putting it on track for a fifth straight weekly decline. The dollar index rose 0.13% to 102.25, while oil prices recovered from earlier lows.
1. Euro and dollar moves
The euro was poised for a fifth straight weekly drop on Friday as early gains faded when oil prices moved off their lows. It had touched a 17-month low of $1.1161 on Monday amid concerns about France’s public debt and the political path to budget cuts. The dollar index was up about 0.3% for the week, on track for a fourth straight weekly gain.
2. Oil and rate expectations
U.S. crude rose 0.6% to $92.04 a barrel, and Brent advanced 0.58% to $104.88, after both had fallen earlier. Markets priced in a 19.4% chance of a Fed rate hike of at least 25 basis points at its meeting later in October, and an 85.8% chance of a hike in December. French and Italian government-debt risk premiums were on track for a weekly decline after rising in late September.
