Investing.com -- EUR/USD fell mildly on Friday but still closed considerably higher for the week, as international creditors approved a comprehensive third bailout for Greece on Friday night hours after the Greek Parliament ratified the deal.
The currency pair traded between 1.1098 and 1.1189 on Friday before settling at 1.1113, down 0.0037 or 0.34% on the session. For the week, the euro gained approximately 1.4% to move slightly positive against the dollar over the last month of trading. The dollar ended the euro's three day winning streak on Thursday by inching up 0.07% for the session.
EUR/USD likely gained support at 1.0808, the low from July 20 and was met with resistance at 1.1213, the high from August 12.
In Brussels, the euro group of finance ministers approved a deal on Friday night to provide Greece with up to €86 billion in stimulus aid, drawing upon the framework of an agreement agreed earlier this week. Euro zone officials anticipate releasing the first tranche of funding, a reported sum of €26 billion, next Wednesday in advance of a bond obligation due to the European Central Bank on August 20. In addition, a reported €10 billion is being set aside to help recapitalize a host of Greek banks that remain on the verge of bankruptcy.
The remaining portions of the initial tranche this year could be paid by the end of the fall, euro group leaders said during a press conference on Friday night. Greece's willingness to enact significant pension reforms over the next several months could compel the International Monetary Fund to participate in the bailout program by October, said Jeroen Dijsselbloem, head of the euro group.
Elsewhere, the U.S. Department of Labor's Bureau of Labor Statistics (BLS) said Friday that its Producer Price Index for final demand (PPI-FD) rose by 0.2 for the month of July, as a spike in trade services pushed wholesale prices up moderately. Analysts expected an increase of 0.1 in the headline reading for the month. In spite of the monthly gains, the index still remained down by 0.8 on a year-over-year basis.
The core PPI-FD, which strips out food and energy prices, ticked up by 0.3 for July even as yearly growth decelerated. For the month of July, the reading increased by 0.6, below significant gains of 0.8 a month earlier. The data did not account for the continuing decline in oil prices over the first two weeks of August.
Separately, the Federal Reserve's monthly index of industrial production rose by 0.6% in July on the back of a 10.6% surge in motor vehicle production. Economists anticipated an increase of 0.4% on the month. In addition, manufacturing jumped by 0.8% on the month above analysts' forecasts for a 0.4% gain.
The mixed data provided little support to hawkish sentiments at the Fed for a September interest rate hike.
The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, rose more than 0.2% to an intraday high of 96.69, before falling back to 96.60 at the close. By comparison, the index soared to a four-month high at 98.40 late last week.