US dollar
The dollar was mixed in early European trade Thursday, in tight ranges as traders digest a potential rift between U.S. Treasury Secretary Steven Mnuchin and the Federal Reserve. The dollar has lost ground against riskier currencies for over a week as drug manufacturers continue to report progress towards a Covid-19 vaccine.
In a letter to U.S. Federal Reserve Chair Jerome Powell, released late Thursday, U.S. Treasury Secretary Steven Mnuchin requested the re-appropriation of some $580 billion allocated to the Treasury under the CARES Act earlier in the year, potentially ending the central bank’s relief programs.
GBP/USD was at 1.3255 despite U.K. retail sales rising 1.2% in October. EUR/USD dropped 0.1% to 1.1870 and USD/JPY rose to 103.85.
Oil prices were largely unchanged Friday, despite concerns about demand growth given the growing number of coronavirus cases and signs of a slowdown in the U.S. labour market.
Gold seesawed between tepid gains/minor losses through the early European session and was last seen trading around the $1,865 region, nearly unchanged for the day.
The EU data calendar today remains light, with only the German Bundesbank President Weidmann’s speech, due at 13:00 GMT to be in focus. There isn’t any major market-moving economic data due for release from the US on Friday.