Euro on track for weekly gains versus dollar

Euro rose past 1.17 in American trade against the dollar on track for the fourth weekly profit in the last five, moving away from June 29 lows, following earlier data from the euro zone and amid a lack thereof from the US today. 

As of 03:05 GMT, EUR/USD rose 0.57% to 1.1708 from the opening of 1.1642, with an intraday high at 1.1723, and a low at 1.1626. 

Earlier German data showed producer prices rose 0.3% as expected, slowing down from 0.5% in May, while accelerating to 3.0% on a yearly basis as expected, up from 2.7% in May. 

The seasonally adjusted reading for the euro zone's trade balance showed a surplus of 4.6 billion euros, down sharply from 27.3 billion in April, while the seasonally unadjusted reading showed a 22.4B surplus, down from 29.6B. 

German Chancellor Angela Merkel said proposed US tariffs on European cars would contravene World Trade Organization's rules, asserting the step would hurt the EU economy and other economies. 

Merkel said the EU would have to take similar steps against the US if required, adding that's the worst-case scenario. 

European Commissioner for Trade Cecilia Malmström noted in earlier remarks that US-EU trade tensions would weaken both sides, while asserting that tariffs on European cars can't be cancelled except as part of a full trade agreement. 

Malmström said the US was never threatened by the EU, while the EU is preparing steps to take if the US imposed tariffs on European cars as President Trump threatened recently. 

Trump Blasts EU, China 

President Donald Trump tweeted earlier: "China, the European Union and others have been manipulating their currencies and interest rates lower, while the U.S. is raising rates while the dollars gets stronger and stronger with each passing day - taking away our big competitive edge. As usual, not a level playing field.."

He added: "Farmers have been on a downward trend for 15 years. The price of soybeans has fallen 50% since 5 years before the Election. A big reason is bad (terrible) Trade Deals with other countries. They put on massive Tariffs and Barriers. Canada charges 275% on Dairy. Farmers will WIN!"

President Donald Trump criticized the Federal Reserve in an interview with CNBC, saying he's "not thrilled" with rate hike decisions that lead to a stronger dollar, while China's yuan falls like a rock. 

He commended Fed Chair Jerome Powell as a "good man", adding he won't intervene into the Fed's actions, with the remarks overall weighing on the dollar on currency war concerns. 

In his two-day testimony before the two chambers of Congress, Fed Chair Jerome Powell pointed to strong economic growth this year with continued improvement in the labor market and inflation rates, while cautioning from short-term consequences to trade protectionism.