The greenback strengthened somewhat in early European trading on Friday, but it was still on track for a significant weekly loss as speculation that the Federal Reserve had finished raising interest rates increased due to declining inflation.

Growing predictions that inflation is declining and that the Federal Reserve will no longer raise interest rates have caused the dollar to drop this week.

Given the shift in the market's sentiment, traders will be watching the Fed speakers who are due to talk later in the afternoon to see how hawkish they come across.

Given the shift in the market's sentiment, traders will be watching the Fed speakers who are due to talk later in the afternoon to see how hawkish they come across.

The dollar index ticked up by 0.1% to 104.374, still on pace for a loss of roughly 1.3% each week.

EUR/USD slipped 0.1% to 1.0839, however this week is expected to see a gain of about 1.5%, the biggest weekly increase since mid-July.

GBP/USD slumped by 0.2% to 1.2377, declining following figures revealed that October retail sales in the United Kingdom fell 0.3% from the previous month, representing a 2.7% annual decline, as British consumers continued to be negatively impacted by a combination of rising interest rates and persistently high inflation.

USD/JPY dipped 0.2% at 150.44, this pair is expected to decline 0.7% this week, marking its greatest weekly gain in more than four months, with the yen among the major winners from the recent decline in the value of the dollar.

The People's Bank of China is currently in the spotlight as it will determine its benchmark lending prime rate on Monday. Expectedly, the bank will continue to maintain record low interest rates as it tries to strike a balance between supporting economic growth and containing yuan weakening.