Investing.com - The euro rose against the dollar and the yen on Friday amid renewed hopes for a deal on a bailout for Greece that would prevent a possible exit from the single currency bloc.
Hopes for a breakthrough on a new bailout deal for Greece were boosted after the government put forward new proposals on budget cuts and economic reforms ahead of a meeting of the euro group of finance ministers on Saturday.
EUR/USD was up 1.1% to 1.1148 late Friday after rising to a one-week peak of 1.1215 earlier in the session.
The single currency pared back gains after Federal Reserve Chair Janet Yellen said the central bank was on track to raise interest rates at some point this year.
She added that she felt an initial rate hike will have a small impact and reiterated that rates would rise only gradually.
EUR/JPY jumped 2.33% to 136.94 in late trade.
The dollar also gained ground against the yen, with USD/JPY advancing 1.18% to 122.67, recovering from the one-and-a-half month lows of 120.40 set on Wednesday.
The yen had strengthened broadly earlier in the week as the deteriorating situation in Greece and a rout in Chinese equity markets bolstered safe haven inflows.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.73% to 95.96 late Friday.
In the week ahead, developments in Greece look likely to continue to dominate sentiment after talks between euro zone finance ministers on a third bailout for Greece ended without an agreement on Saturday.
European Union leaders were to hold another summit meeting on Sunday.
China is to release data on second quarter growth, while monetary policy statements by the European Central Bank and central banks in Japan and Canada will also be in focus.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, July 13
The eurogroup of euro zone finance ministers are to hold talks on Greece’s bailout in Brussels.
Tuesday, July 14
In the euro zone, the ZEW Institute is to report on German economic sentiment.
The U.S. is to release data on retail sales and import prices.
Wednesday, July 15
China is to release what will be closely watched figures on second quarter economic growth, as well as data on industrial production and fixed asset investment.
The U.S. is to publish figures on industrial production and manufacturing activity in the New York region.
Fed Chair Janet Yellen is to testify on the semiannual monetary policy report before the House Financial Services Committee, in Washington.
Thursday, July 16
The euro zone is to publish revised data on consumer inflation.
The ECB is also to announce its monetary policy decision. The rate announcement will be followed by a post-policy meeting press conference with President Mario Draghi.
Fed Chair Janet Yellen is to testify on the semiannual monetary policy report before the Senate Banking Committee, in Washington.
At the same time, the U.S. is to release data on manufacturing activity in the Philadelphia region.
Friday, July 17
The U.S. is to round up the week with a string of reports on consumer inflation, building permits, housing starts and consumer sentiment.