Both the Euro and Sterling rallied on Friday yet remained on course for their biggest weekly losses since September.

This is ahead of U.S. jobs data that may underline the Fed’s hawkish stance this week that bolstered the Dollar.

An improvement in investor sentiment helped fuel the gains on reports China could ease stringent Covid measures, which also led to a steep increase in the Yuan, Reuters reports.

The single currency was up 0.24% at the time of writing to $0.9772, having traded around 0.54% higher earlier in the session, whereas the Pound rose 0.6% to $1.1228.

However, the Euro was still on track for a 1.9% weekly fall, and the Sterling a 3.4% drop, the largest since September, when the UK’s so-called mini-budget was unveiled.

The Dollar edged up this week on statements from Fed chair Jerome Powell that the central bank may continue to hike rates if inflation doesn’t slow down.

“There's a growing perceived chance that the Fed will be the last major central bank to throw in the towel and arrest its tightening cycle,” said ING FX strategist, Francesco Pesole.

“We think this notion can provide quite sustainable support to the Dollar into the new year.”

U.S. payroll data scheduled to be published on Friday will offer the most recent signal of the economy’s health. According to a Reuters poll of economists, a rise of 200,000 jobs was forecast last month, following an increase in September of 263,000.

“An upside surprise to the data would reinforce the Fed’s higher terminal rate posture and keep the U.S. Dollar bid, but softer prints can weigh on the Dollar,” said Christopher Wong, currency strategist at OCBC.

Whereas eurozone business activity contracted in October at the fastest pace since the end of 2020, according to data out on Friday