The euro is heading for a fifth consecutive weekly decline against the US dollar for the first time since 2015 in light of the political uncertainty in Italy, and the EURUSD fell from its highest level since the beginning of the year at 1.2554 and is currently trading at 1.1760.
The pressure on the euro came amid fears that popular parties are close to forming a government in Italy, and anti-reform 5-star movement and Lega party agreed on a governance deal that would cut taxes and increase spending.
The dollar rose during Friday's trading, adding further damage to the euro. The dollar index hit its daily high of 93.56, while it reached its highest against the Japanese yen at 111.08 in the wake of a slowdown in Japanese inflation figures for the second month in a row.
Also, sterling fell against the US dollar as well as the euro amid concern over Britain would stay in the EU customs union after the Brexit. GBP hit a 2-day low against the US dollar at 1.3466, while the EURGBP hit a two-day high of 0.8753.
The Canadian dollar also fell against its US counterpart in the wake of slower Canadian inflation figures in April, with the CPI rising by 2.2% below expectations, so USDCAD rose to its highest level since May 15 at 1.2890, and it is a candidate for further rise.
