The euro rose for a second straight day on hopes for next week's talks between the United States and China to ease current trade tensions. The euro has been under considerable selling pressure lately amid fears of European banks being exposed to Turkey after the collapse of the Turkish lira.
Also, what helped the euro is the stability of inflation figures higher than the European Central Bank's target, which is good news for the bank, which is seeking to end its bond buying program by the end of this year and start raising interest rates next year.
The biggest beneficiary of investors' fear was the US dollar, boosted by gains to a 13-month high against its main rivals. Currently, the EURUSD is trading at the levels of 1.1407, while the USDJPY is near the week's low at 110.30.
Investors remain concerned about the policies of Turkish President, Erdogan and the US threat to impose further economic sanctions unless the US pastor is handed over. USDTRY rose during the day to a two-day high of 6.32 before settling at 6.13.
The Canadian dollar rose significantly against the US dollar following unexpectedly high inflation data, with the annual consumer price index rising by 3% in July from 2.5% in June, USDCAD declined to 1.3065 after the data.
