Euro on track for first weekly profit in a month after Lagarde's remarks

Euro climbed in European trade against a basket of major rivals after a hiatus from gains yesterday off two-week highs, with the common currency heading for the first weekly profit in a month.

The dollar was hurt by a drop in US yields amid concerns about recession in the US following bearish remarks by Fed Chair Jerome Powell.

EUR/USD rose 0.3% to 1.0547, after losing 0.4% yesterday, the first loss in four days on profit-taking off two-week highs at 1.0605.

Christine Lagarde 

ECB President Lagarde said the the ECB doesn't expect a recession in the euro zone but will take precautions nonetheless. 

Lagarde naturally blamed inflation on the Ukrainian crisis and asserting working on controlling prices using available tools. 

US rates

Now markets are pricing in a 0.25% rate hike by the ECB in July, and a similar hike in September to control inflation.

The Dollar Index

The dollar index fell 0.2% on Friday against a basket of major rivals. 

The losses came as US yields tumble 1.6% today on track to touch a two-week low at 3.007%, undermining the greenback.

Fed Chair Jerome Powell said the Fed is committed to control prices even if that threatened a recession in the country.