The dollar retraced earlier losses against the euro on Friday after U.S. President Donald Trump said the United States was ending trade talks with Canada and that he would consider bombing Iran again,

US president has clashed with incumbent Jerome Powell, whose term is due to run for 11 more months

Fed Chair Powell reiterated uncertainty over the effects of tariffs on prices. And for all the concern about labor markets, the real problem there, particularly with deportations, is too few workers,

The U.S. dollar was just above its lowest level in 3-1/2 years against the euro and sterling on Friday, with traders ramping up bets on deeper U.S. rate cuts, but tempering expectations of an ECB rate cut on higher inflation numbers from France and Spain.