Euro on track for third weekly loss in row

Euro rose in European trade against dollar away from 16-month lows while on track for the third weekly loss in a row on worries about divergent US-European monetary policies.

EUR/USD rose 0.3% to 1.1244, with an intraday low at 1.1204, after marking 16-month lows yesterday at 1.1186.

Euro is still down 0.5% against the greenback on track for the third weekly loss in a row.

The weekly losses come amid mounting concerns over divergence monetary policies between Europe and the US, with investors ruling out a European rate hike next year while the Fed is expected to hike rates.

ECB President Christine Lagarde said recently that tightening policies no would directly harm the economy, and that she doesn't expect requirements for a rate hike to be fulfilled by 2022.

Otherwise, US data continue to prove highly bullish, with inflation accelerating by unprecedented rates, bolstering the case for a US rate hike in 2022.