07:27 AM EDT, 05/17/2024 (MT Newswires) -- The US dollar rose further off the week's lows against all major counterparts in early European trade Friday as proxies of market sentiment toward China underperformed in a quiet session for advanced economy economic data.

China's proxies underperformed following a mixed batch of economic figures out of China overnight and some possible market disappointment over the expected size of funding for a government rescue of the real estate market.

This was after Bloomberg News reported the Peoples' Bank of China is establishing a fund worth 300 billion yuan ($41.51 billion) to help state-owned companies buy up unsold homes and convert them into social housing. Barclays economists estimated previously Thursday that authorities would need to raise at least $1 trillion for the plan to be effective.

Friday's underperformance of China's proxies marks a reversal of the outperformance seen from midweek when the plan to stabilize the real estate market first came to light, and leaves market attention focused on forthcoming speeches from the Federal Reserve's Christopher Waller, Mary Daly and Adrian Kugler in what is set to be a quiet session for economic data.

A quick summary of foreign exchange activity heading into the European lunch hour and US open;

EUR/USD was quoted lower at 1.0839 after falling further from the week's high of 1.0895 during the European morning. The single currency stabilized above 1.0840 after Eurostat confirmed that eurozone inflation was unchanged at 2.4% in April. The core inflation rate was confirmed to have fallen to 2.7%, from 2.9%.

GBP/USD was quoted lower at 1.2656 with sterling showing greater resilience than other currencies in the face of a strengthening dollar after Chancellor Jeremy Hunt was reported to have said in a speech from Westminster that the government will cut national insurance payroll taxes again in the autumn if able.

USD/JPY was quoted higher at 155.85, placing the yen around the middle of the G10 rankings, despite an uptick in European government bond yields with the Japanese currency's resilience perhaps owing to weakness in advanced economy stock markets. There was no economic data released in Japan overnight.

USD/CAD was quoted higher at 1.3640, making the Canadian dollar the third best performing G10 currency behind the US dollar and pound sterling. Local market attention now shifts to the 0830 am ET release of the New Housing Price Index and Statistics Canada figures covering foreign securities purchases.