The US dollar spot index continued to give back ground at the start of the week amid what analysts at UniCredit Research described as a "symphony of factors" conspiring to the advantage of the single currency.
Trump defended himself this Sunday from the backlash spraked by his comments about Haiti and African countries, saying "I'm not a racist".
The single currency area's foreign trade surplus with the rest of the world rose again in November, led by an improvement in Germany.
Sterling shot higher at the end of the week, with traders referencing a report that the Spanish and Dutch finance ministers were hoping to promote a soft Brexit as the main trigger behind the move.
The euro rose to a three-year high against the dollar on Friday as investors welcomed a breakthrough in German coalition talks.
Sterling rose to its best level since the Brexit vote on Friday on news that Spain and Holland's finance ministers have reached an agreement that would see the two work together to lock down a Brexit deal that would keep the UK as close to the EU as possible.
The cost of living in the US jumped last month, pushed higher by a surge in the cost of used cars and trucks and medical care commodities.
President Donald Trump rejected a bipartisan compromise to extend protections against deportations of young immigrants on Thursday and questioned why would he allow more immigrants coming from Haiti and “shithole countries” in Africa. On Friday the president denied having said the derogatory comments.
US retail sales grew more strongly than expected last month amid especially strong demand for building materials and for on-line retailers.
Blockchain company Ripple announced on Thursday that it had finalised an agreement with Texan funds transfer giant MoneyGram that would see Ripple's digital currency XRP, which had soared in value since the beginning of December despite questions regarding its practical uses, be used to provide liquidity to financial institutions.
Bitcoin's value dived 13. 5% on Thursday after South Korean officials revealed the nation was planning to ban trading of the cryptocurrency.
The number of Americans filing for unemployment benefits unexpectedly rose last week, according to figures from the Labor Department.
Canada has filed a complaint with the World Trade Organization against the US, claiming it has broken international trade rules.
The euro has snapped higher after rate-setters in Frankfurt dropped a hint that they might harden their so-called 'guidance' for their policy settings.
Eurozone industrial production jumped more than expected in November and the bloc headed into 2018 on the front foot.
The Democratic Republic of Congo has taken the first steps towards hiking taxes on cobalt exports by more than double, a move that could potentially increase the cost of a key material used in electric car batteries.
Longer-term US Treasury yields jumped to near their 2017-highs following a report that Beijing might be looking to slow or stop its purchases of American government debt.
Washington is planning on changing its nuclear weapons policy and developing more "usable" nuclear warheads for US on its Trident missiles.
Chinese consumer prices fell short of forecasts in December alongside a drop in factory gate inflation in the Asian giant to a 13-month low, possibly opening the way up for looser central bank policy.