The U.S. dollar edged higher in early European hours Friday, rebounding from 15-month lows as traders factored in an end of the Federal Reserve's rate hike cycle as inflation eases.

At 02:55 ET (06:55 GMT), the dollar index, which tracks the greenback against a basket of six other currencies, traded 0.2% higher at 99.620, after having fallen below the 100 level for the first time since April 2022.

EUR/USD fell 0.2% to 1.1207, having touched a fresh 16-month peak of 1.1244 in Asian hours before easing.

German wholesale prices fell 2.9% on an annual basis in June, more than expected. This is usually regarded as a leading indicator of consumer price inflation, and the sharp drop will please the European Central Bank given German inflation remains highly elevated.

GBP/USD fell 0.3% to 1.3096, having broken above 1.30 on Thursday for the first time since April 2022, while USD/JPY rose 0.2% to 138.3, with the yen on course for its best week against the dollar since January.

AUD/USD fell 0.3% to 0.6869 amid some uncertainty over monetary policy after the government named Deputy Reserve Bank Governor Michele Bullock as the new central bank governor, the first woman appointed to the role.

USD/CNY fell 0.3% to 7.1303, close to a one-month high following a series of stronger-than-expected midpoint fixes by the People's Bank of China.

Source: Investing.com