2018.04.2006:27:00UTC+00Euro Flat as Investors Mark Time Ahead of ECB Guidance Next Week

The euro settled above the $1.23 line on Friday and is on track for its smallest week of gains in ten months as investors marked time ahead of the European Central Bank's meeting next week where policymakers might give insight on removing policy stimulus.

Long euro bets are the biggest consensus trade in the foreign exchange market, with net positions holding near a record high despite PMIs recording a sizeable drop in March and mixed inflation data.

The European Central Bank meets next week and expectations have grown that policymakers may take another small step in exiting its ultra-easy monetary policy after dropping a long-standing pledge to raise its bond buying if needed at its last meeting in March.

The euro was trading broadly flat at $1.2334 and is on track to increase less than 0.1 this week, its smallest week of gains since June 2017.

Sterling was moving lower on Friday to $1.4041 having fallen almost one percent in the New York session after Bank of England Governor Mark Carney said that a rate hike this year was "likely".

Expectations of a UK interest rate hike in May has dropped to around 40 percent from 70 percent earlier this week after Carney's remarks.

The dollar index, which measures the greenback against a basket of peer currencies, was up 0.1 percent.

The greenback rose to 107.54 yen, rising 0.2 percent on the day and moving near its seven-week peak of 107.78 yen notched last week.