Investing.com - The euro rallied against the dollar and the yen on Friday amid renewed optimism that Greece would reach a deal on a new bailout with its creditors, allowing the country to remain on in the euro zone.
Hopes for a breakthrough were boosted after Greece 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.
EUR/JPY jumped 2.33% to 136.94. 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.
Elsewhere, the Canadian dollar gained ground against the greenback on Friday, boosted by the stronger-than-expected domestic jobs report.
Statistics Canada reported that the economy shed 6,400 jobs in June, fewer than the 10,000 loss forecast by economists.
USD/CAD settled at 1.2657 in late trade, off 0.39% for the day as investors trimmed back expectations for a rate cut by the Bank of Canada at its upcoming meeting on Wednesday.
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.
The Bank of England is to publish the results of its quarterly survey on credit conditions.
Tuesday, July 14
Australia is to release a report on business confidence.
Switzerland is to report on producer prices.
The U.K. is to release data on consumer price inflation.
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
Australia is to release data on consumer sentiment.
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 Bank of Japan is to announce its benchmark interest rate and publish its rate statement, which outlines economic conditions and the factors affecting the monetary policy decision.
The U.K. is to publish its monthly employment report.
Canada is to release data on manufacturing sales.
The U.S. is to publish figures on industrial production and manufacturing activity in the New York region.
The BoC is to announce its benchmark interest rate and publish its rate statement. The announcement is to be followed by a press conference to discuss the monetary policy decision.
Federal Reserve Chair Janet Yellen is to testify on the semiannual monetary policy report before the House Financial Services Committee, in Washington.
Thursday, July 16
New Zealand is to release data on consumer price inflation.
Switzerland is to release data on retail sales.
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
Canada and the U.S. are to release report on consumer inflation.
The U.S. is also to release data on building permits, housing starts and consumer sentiment to round up the week.