The U.S. dollar edged lower on Friday amid rising prospects of an interest rate cut by the Federal Reserve in September after the latest readings on the nation's inflation.

The University of Michigan released revised data on Friday showing consumer sentiment in the U.S. deteriorated by slightly less than previously estimated in the month of July. The report said the consumer sentiment index for July was upwardly revised to 66.4 from the preliminary reading of 66.0. Economists had expected the reading to be unrevised.

Consumer prices in the U.S. crept up in line with economist estimates in the month of June, according to a highly anticipated report released by the Commerce Department on Friday. The Commerce Department said its personal consumption expenditures (PCE) price index inched up by 0.1 percent in June after coming in unchanged in May. The uptick by the index matched expectations.

Russia's central bank raised its benchmark rate by 200 basis points on Friday amid rising risks to inflation and slower domestic demand, and also kept the door open for further tightening. The board of directors, led by Governor Elvira Nabiullina, decided to lift the key rate to 18.00 percent from 16.00 percent.

Eurozone consumers' inflation expectations remained stable in July, the latest consumer expectations survey published by the European Central Bank showed on Friday. Inflation expectations for the coming year was steady at 2.8 percent after having fallen in May to their lowest level since September 2021. Inflation expectations for the next three years also remained unchanged in July.

France's consumer confidence improved slightly in July ahead of Olympic Games, survey results from the statistical office INSEE showed on Friday. The consumer confidence index climbed to 91 in July from revised 90 in June. The index remained below its long-term average. The score was forecast to rise to 90 from June's initially estimated value of 89.

Singapore's central bank left its monetary policy unchanged for the fifth consecutive meeting on Friday despite downgrading the inflation outlook. The Monetary Authority of Singapore decided to maintain the prevailing rate of appreciation of the S$NEER policy band. There will be no change to its width and the level at which it is centered.

Consumer confidence from France is due on Friday, headlining a light day for the European economic news. At 2.45 am ET, France's statistical office INSEE is scheduled to issue consumer confidence survey results. Economists expect the index to rise to 90 in July from 89 in June.

The U.S. dollar turned in a slightly volatile performance on Thursday as traders digested the latest batch of economic data, including a report on the nation's second-quarter GDP growth.

Economic growth in the U.S. accelerated by more than expected in the second quarter of 2024, according to a report released by the Commerce Department on Thursday. The report said real gross domestic product surged by 2.8 percent in the second quarter after jumping by 1.4 percent in the first quarter. Economists had expected GDP to increase by 2.0 percent.

Reflecting a steep drop in new orders for transportation equipment, the Commerce Department released a report on Thursday unexpectedly showing a sharp decline in orders for durable goods in the month of June. The Commerce Department said durable goods orders plunged by 6.6 percent in June after inching up 0.1 percent in May. Economists had expected durable goods orders to rise by 0.3 percent.

The Labor Department released a report on Thursday showing a modest decline by first-time claims for U.S. unemployment benefits in the week ended July 20th. The report said initial jobless claims fell to 235,000, a decrease of 10,000 from the previous week's revised level of 245,000. Economists had expected jobless claims to dip to 238,000.

Amid political uncertainty, France's manufacturing confidence weakened to the lowest since late 2020 largely due to weaker general and personal production expectations, survey data released by the statistical office INSEE showed on Thursday.

The business climate index in manufacturing declined to 95 in July from 99 in June. This was the lowest reading since December 2020.

Eurozone loan growth improved slightly in June but the overall pace of expansion remained subdued, data published by the European Central Bank showed on Thursday. Adjusted loans to the private sector logged an annual growth of 1.1 percent after rising 0.8 percent in May.

German economic sentiment declined sharply in July as signs of economic recovery faded, survey data from the ifo Institute showed on Thursday. The ifo Business Climate Index fell unexpectedly to 87.0 in July from 88.6 in June. The reading was seen at 88.9. The survey showed that companies were less satisfied with the current business situation and their skepticism regarding the coming months inc

The Japanese yen strengthened against other major currencies in the Asian session on Thursday, as traders speculate that the Bank of Japan is likely to raise its interest rate in the monetary policy meeting due next week, to boost the currency.

China's central bank unexpectedly reduced the medium-term lending facility rate by 20 basis points for the first time since August, after cutting several benchmark lending rates on Monday. The People's Bank of China cut the rate on one-year medium-term lending facility to 2.3 percent from 2.5 percent on Thursday. The bank injected CNY 200 billion into the market via MLF.

The commodity currencies such as Australia, the New Zealand and the Canadian dollars weakened against their major currencies in the Asian session on Thursday amid risk aversion, following the broadly negative cues from global markets overnight, led by steep declines for technology stocks, which mirrored their peers on the tech-heavy Nasdaq, after a few big-name U.S. tech firms reported disappointing quarterly numbers. Lingering concerns over slowing growth in the world's second largest economy, China, also kept investors nervous.

Business confidence from Germany and monetary aggregates from the euro area are due on Thursday, headlining a light day for the European economic news. At 2.45 am ET, France's statistical office ISTAT is scheduled to issue business confidence survey results. The business sentiment index is forecast to remain unchanged at 99 in July.

The U.S. dollar stayed mostly weak on Wednesday as traders awaited crucial U.S. inflation data, due later in the week.

The Commerce Department released a report on Wednesday unexpectedly showing a continued decrease by new home sales in the U.S. in the month of June. The report said new home sales fell by 0.6 percent to an annual rate of 617,000 in June after plummeting by 14.9 percent to a revised rate of 621,000 in May.

In a widely expected move, the Bank of Canada on Wednesday announced its decision to lower interest rates by another quarter point. The Bank of Canada said it has reduced its target for the overnight rate by 25 basis points to 4.5 percent, with the bank rate at 4.75 percent and the deposit rate at 4.5 percent.

The euro area private sector recovery waned further in July amid deteriorating manufacturing sector performance and softening services activity growth, a survey compiled by S&P Global showed on Wednesday. The HCOB composite output index dropped unexpectedly to 50.1 in July from 50.9 in June. The score was seen at 51.1. A score above 50.0 indicates expansion.

The euro weakened against other major currencies in the European session on Wednesday, as a survey showed business activity in the eurozone slowed further in July, signaling a "near-stagnation" and raising concerns about economic recovery.

Germany's private sector slipped into contraction in July due to the deeper decline in manufacturing and slower growth of services activity, flash survey results from S&P Global showed on Wednesday. The HCOB composite output index dropped unexpectedly to 48.7 in July from 50.4 in June. The reading was seen at 50.7.