Euro Set To Finish The Week Above $1.27

The euro made its way back above $1.27 to finish the week after plunging to its lowest level since November of 2012 on Thursday.

The common currency traded at $1.2748 at 8:00 GMT on Friday morning as the region’s economic trouble continued to weigh.

Meanwhile the dollar has been climbing as economic data spurs on speculation that the Federal Reserve could consider raising interest rates sooner than expected.

Though the bank has been reluctant to revise its forward guidance and allow for the possibility of an early rate hike, many investors see the improving economy as cause for the bank to consider tightening sooner rather than later.

Earlier in the week, U.S. home sales data came in better than expected, suggesting that the nation’s housing market is moving in the right direction. However, durable goods orders out on Thursday disappointed, and unemployment figures indicated that the labor market may not be as strong as it has been perceived to be.

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The lackluster figures have put more focus on next week’s jobs report, due out October 3, as investors look for a clearer picture of the U.S. labor market’s progress.

The European Central Bank is moving in the opposite direction as the region’s economic releases continue to confirm that the eurozone’s economy is sputtering to a halt.

On Wednesday, The Wall Street Journal reported that ECB President Mario Draghi again announced his willingness to use unconventional measures in order to kickstart the eurozone’s ailing economy. Many believe his comments are setting the bank up to announce a large scale quantitative easing program at one of its future policy meetings.