The euro rose in European trade on Friday against a basket of major currencies, extending gains for a fourth consecutive session against the US dollar and approaching a two-week high. The single currency is on track to secure a second straight weekly advance, supported by broad weakness in the US dollar amid mounting concerns over an economic slowdown in the United States.

Although inflationary pressures have eased somewhat for European Central Bank policymakers particularly after recent data showed a slowdown in October inflation expectations for a rate cut in December remain limited.

Price Overview

EUR/USD climbed 0.1% to 1.1645 dollars, up from the opening level of 1.1633 dollars, after touching a low of 1.1623 dollars.

The euro ended Thursdays session up 0.35% against the dollar, marking a third consecutive daily gain and reaching a two-week high at 1.1656 dollars, as investors focused on buying lower-yielding currencies.

Weekly Performance

For the week ending today, the euro is up around 0.75% against the US dollar and is on course to record a second consecutive weekly gain.

US Dollar

The US Dollar Index fell 0.1% on Friday, extending losses for a second straight session and nearing a two-week low, reflecting continued weakness in the greenback against a basket of global currencies.

Despite the reopening of the US government following the longest shutdown in the countrys history, markets remain concerned about the long-term economic impact of the closure on US activity.

European Interest Rates

Recent data in Europe showed headline inflation in the eurozone slowing in line with expectations in October, while core inflation remained steady easing some of the pressure on ECB policymakers.

Following the data, market pricing for a 25-basis-point rate cut in December rose from 10% to 25%.

Investors now await additional economic releases in Europe, along with remarks from ECB officials, to reassess rate expectations.