The US dollar is retreating off the highs, allowing other currencies and gold to recover while stocks are stable after several down days. US consumer confidence and several retail sales figures are lined up for today as a turbulent week draws to a close.
Global coronavirus cases have topped 30 million, with deaths approaching 950,000. Europe is emerging as a hotspot once again with France grabbing fresh attention. Infections and deaths in the US have seemed to stop falling.
GBP/USD remains highly volatile, currently at 1.2972. Health experts are reportedly suggesting putting the UK on a second national lockdown as cases continue rising. U.K. retail sales rose 0.8% on the month in August, slightly better than the 0.7% predicted, but still a sharp slowdown from the 3.7% growth seen in July.
EUR/USD witnessed a dramatic intraday turnaround on Thursday and rallied over 100 pips from five-week lows. The pair now seems to have entered a bullish consolidation phase at 1.1860.
USD/JPY recently marked a quick 11-pip up-move before erasing it to stay under 105.00.
Gold is trading at around $1,950, off the post-Fed lows but below the levels seen prior to the event. The precious metal also depends on the next round of fiscal stimulus. Democrats and Republicans are deliberating a proposal worth $1.5 trillion that has been designed by a bipartisan group of moderates.
Oil prices climbed Friday, with the complex set for its best week since June on the back of strong words from Saudi Arabia about adherence to agreed production cuts and reduced U.S. stockpiles.
In the absence of any major market-moving economic releases from the Eurozone, market mood will remain at the mercy of the USD price dynamics. Later during the early North American session, the release of the Michigan Consumer Sentiment Index for September will be looked upon for some trading impetus on the last day of the week.