The European Single Currency, euro edged up 0.2 percent to the dollar, after tumbling on Thursday to a three-week low of $1.1662 after minutes of the European Central Bank’s July 20 policy meeting showed the bank was worried about the currency rising too much.
ING saw the ECB’s euro concerns as justified and expeptes the bank to proceed cautiously while unwinding stimulus, in turn limiting the upside to European bond yields.
Yields have fallen in recent days following the ECB comments and amid the dash for defensive assets, with 10-year Bunds at a one-week low of 0.41 percent while 10-year Treasuries traded just off one-week lows hit on Thursday.
The Pound Sterling, slumped against the euro and was poised for a third consecutive week of losses as a global selloff in risky assets prompted investors to cut bets after a week of tepid U.K. data.
