Euro rose in European trade on Friday against a basket of major rivals, holding above one-week lows against the dollar and heading for the first profit in four days, as investors await European inflation data for February.

The data will provide fresh pricing for the future of ECB interest rate cuts, which could start in May.

EUR/USD

EUR/USD rose 0.2% to 1.0822, with a session-low at 1.0722, after losing 0.3% on Thursday, the third loss in a row, plumbing a week low at 1.0796 following German consumer prices data, which missed estimates.

Euro fell 0.15% in February, the second monthly loss in a row as the odds of early US rate cuts faded.

European Rates

Also the odds of an early 0.25% ECB interest rate cut in April faded following bullish remarks by European Central Bank officials.

The markets are now betting on the first European rate cut occurring in May or June.

According to the ECBs last meeting minutes, policymakers believe its still too early to talk about rate cuts despite signs of slower inflation in the eurozone.

ECB President Christine Lagarde said this week that wages growth remains strong, which will continue to prop up prices.

Inflation Data

Now investors await consumer prices data for the whole eurozone in February to gauge the likely path ahead for ECB interest rates.

Eurozones consumer prices are expected up 2.5% in February, decelerating from 2.8% in January.