Euro falls, set for fifth straight weekly drop as oil prices rise
FXE•The euro was down 0.1% at $1.1198 and was on track for a fifth consecutive weekly decline as oil prices recovered from earlier losses. The dollar index rose 0.13% to 102.25 and was poised for a fourth straight weekly gain.
1. Euro and dollar moves
The euro was down 0.1% at $1.1198 on Friday and off about 0.5% for the week, set for its fifth straight weekly drop against the dollar. The dollar index rose 0.13% to 102.25 and was up about 0.3% for the week, on track for its fourth consecutive weekly gain.
2. Oil and rate outlook
Oil prices recovered after falling earlier, with U.S. crude up 0.6% at $92.04 a barrel and Brent up 0.58% at $104.88. Markets priced in a 19.4% chance of a Fed rate hike of at least 25 basis points later this month and an 85.8% chance of a hike in December.
3. Pressure on the euro
The euro had hit a 17-month low of $1.1161 on Monday as investors weighed France's public debt and the political challenge of budget cuts. Risk premiums on French and Italian government debt were on track to decline for the week after rising in late September.
