USD weakens versus euro

The US dollar declined in relation to the euro on Friday after new data showed that the Eurozone’s service sector is doing better than anticipated and on a European Central Bank official’s comments that the Bank is still most worried about inflation, both of which shored up expectations that the ECB will hold interest rates steady while the US Federal Reserve will likely cut rates again soon.

Just past 1 p.m. in new York, the dollar was trading at $1.4822 versus the euro while it was at $1.9671 to the pound.

Meanwhile, the Canadian dollar weakened against the US dollar on weaker than expected retail sales in Canada in December.

In early afternoon trade the Canadian dollar was at C$1.0163 to the US dollar.

The yen was stronger versus both the US dollar and the euro on Friday as European and US equities markets saw losses that convinced investors to exit carry trades financed by the yen.

The yen traded at ¥106.8650 to the dollar, at ¥158.4006 to the euro, and at ¥210.2164 to the pound.

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