Euro holds above two-week lows amid positive outlook

Euro rose in European trade against major rivals off two-week lows against dollar amid positive outlook for ECB rate hikes.

Dollar is also declining against most rivals as Fed rate estimates reach a peak and round out following the June's meeting.

EUR/USD rose 0.25% to 1.0445, with a session-low at 1.0417, after falling 0.5% on Friday to two-week lows at 1.0366.

Euro lost 1.2% last week against dollar, the fourth weekly loss in a row on divergent policies between Europe and the US.

Positive Outlook 

ECB members expect their ability to control inflation without causing a recession.

The remarks bolster similar statements by ECB President Christine Lagarde, which paved the way for a 0.25% rate hike at the July meeting, and a similar one at the September meeting. 

The Dollar

The dollar index fell 0.2% on Friday off two-week highs at 105.64 against a basket of major rivals. 

Recent data showed the US manufacturing PMI declined sharply to 53 from 56.1, bolstering the case for US recession in the second quarter.

ECB's last meeting minutes will be released soon and will offer clues on the path forward in monetary policies.