Euro on track for second weekly loss

Euro rose in European trade away from three-week lows against dollar, while on track for the second weekly loss in a row on renewed concerns over divergent monetary policies between Europe and the US.

EUR/USD rose 0.2% to 1.1785, with an intraday low at 1.1758, after closing down 0.45% yesterday, the fourth loss in five days, marking three-week lows at 1.1750 following strong US retail sales.

Euro is still down 0.25% this week on track for the second weekly loss in a row against dollar. 

In the US, retail sales rose 0.7% in August, beating estimates of a 0.7% decline, while industrial activities improved in Philadelphian during September.

The data bolstered the case for a reduction in US bonds purchases before the year's end in a step that aims at raising US interest rates. 

On the other hand, the European Central Bank asserted last week its commitment to maintain an ultra easy policy until the end of next year's first quarter at least, in turn triggering concerns of divergent US-European monetary policies.