The U.S. producer inflation data for November came in somewhat hotter than anticipated. As a result, the dollar nudged higher against the euro.
According to data, U.S. producer prices (PPI) increased by 0.3% in November, beating the 0.2% expectation made by economists surveyed by Reuters.
In an effort to combat decades-high inflation, the U.S. central bank is currently through its quickest cycle of interest rate increases since the 1980s. However, Chair Jerome Powell stated last month that the rate increases may slow down as early as December.
The euro was 0.27% down against the dollar at $1.053, but the single currency was still on course for a third consecutive rise.
The European Central Bank and the Bank of England will also announce interest rate decisions next week and markets are betting that they, along with the Fed, will slow the pace of their rate hikes, with 0.5 percentage point increases across the board.