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Forex- Euro Rises on Positive Eurozone Growth

The euro was higher on Friday.

Investing.com - The euro was steady on Friday, as the U.S. dollar fell amid trade war concerns.

French and German business activity in June came in higher than expected, easing concerns of a slowdown in the eurozone.

EUR/USD rose 0.57% to 1.1669 as of 5:18 AM ET (9:18 GMT) while the pound was higher, with GBP/USD rising 0.52% to 1.3308.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.42% to 94.14.

Tensions between the U.S. and its allies continue, as India joined China and the European Union in retaliation against steel and aluminum tariffs. As the biggest buyer of almonds, India raised its tariff on U.S. almonds by 20%.

Meanwhile the European Union imposed tariffs on about $3.4 billion of U.S. imports on Friday, including motorcycles, orange juice and cranberry sauce. The tariffs have added to tensions as investors fear an outright global trade war between the U.S.and other major countries.

The greenback was also held back by a decline in the Philadelphia Federal Reserve’s manufacturing index on Thursday. The index fell to a one-and-a-half-year low, increasing concern about the strength of the U.S. economy.

The dollar was higher against the safe-haven yen, with USD/JPY increasing 0.15% to 110.14. In times of uncertainty, investors tend to invest in the Japanese yen, which is considered a safe asset during periods of risk aversion.

Elsewhere, the Australian dollar was higher, with AUD/USD up 0.76% at 0.7433, while NZD/USD rose 0.66% to 0.6911. The loonie increased, with USD/CAD down 0.29% to 1.3277.

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