The Pound Sterling (GBP) recovers sharply in North American trading hours after posting a fresh seven-month low near 1.2470 against the US Dollar (USD) on Friday.

The US Dollar (USD) is residing not far from its fresh two-year high of 108.55 that was hit during the Asian-Pacific trading session. The move was supported by rising US Treasury yields, widening the rate-differential gap with other countries. This means

Crude Oil prices look unable to avoid a weekly loss of around 2% in yet another downbeat trading day. The mood turned further negative overnight as investors got concerned about the Federal Reserve’s (Fed) hawkish tilt, which could quickly kill off any

In a statement released on Friday, Federal Reserve Bank of Cleveland President Beth Hammack noted that she dissented because the data supported holding the policy rate steady, per Reuters.

The Mexican Peso (MXN) trades with minor gains against the US Dollar (USD) on Friday, regaining some of the ground lost following a ”hawkish cut” by the Federal Reserve (Fed) on Wednesday.

EUR/USD rebounds sharply above 1.0400 in Friday’s North American session after posting a fresh three-week low near 1.0340 in Asian trading hours.

Gold (XAU/USD) is trading with a moderate positive tone on Friday following the sharp sell-off earlier this week.

The GBP/JPY pair is down almost 0.4% to 196.00 in Friday’s North American session.

Inflation in the US, as measured by the change in the Personal Consumption Expenditures (PCE) Price Index, edged higher to 2.4% on a yearly basis in November from 2.3% in October, the US Bureau of Economic Analysis (BEA) reported on Friday.

United States Core Personal Consumption Expenditures - Price Index (MoM) below forecasts (0.2%) in November: Actual (0.1%)

United States Personal Consumption Expenditures - Price Index (MoM) below expectations (0.2%) in November: Actual (0.1%)

United States Personal Income (MoM) came in at 0.3% below forecasts (0.4%) in November

United States Personal Consumption Expenditures - Price Index (YoY) below forecasts (2.5%) in November: Actual (2.4%)

United States Personal Spending below forecasts (0.5%) in November: Actual (0.4%)

United States Core Personal Consumption Expenditures - Price Index (YoY) came in at 2.8% below forecasts (2.9%) in November

Canada Retail Sales (MoM) came in at 0.6%, below expectations (0.7%) in October

Canada Retail Sales ex Autos (MoM) came in at 0.1% below forecasts (0.5%) in October

The Pound Sterling (GBP) is flat on the session. UK Retail Sales rose a softer than expected 0.2% in November (versus +0.5% forecast), extending a run of disappointing Retail Sales data, Scotiabank’s Chief FX Strategist Shaun Osborne reports.

The Euro (EUR) trades broadly steady in the mid-1.0300s against the US Dollar (USD) on Friday even after President-elect Donald Trump threatened Europe with tariffs "all the way" unless it purchased more US energy products, Scotiabank’s Chief FX Strategist Shaun Osborne says.

From a wider perspective, the pair maintains its broader positive bias intact and is on track to complete a four-week rally from levels below 1.4000 in late November.

The Canadian Dollar (CAD) is little changed in overnight trade. Factors driving the CAD lower this week have moderated and the USD remains quite significantly overvalued relative to my short-term equilibrium estimate (1.4280 today), Scotiabank’s Chief FX Strategist Shaun Osborne reports.

Markets are ending the week of a bit of a sour note. The USD has been clipped back somewhat in overnight trade as investors ponder a looming US government shutdown.

In an interview with Bloomberg on Friday, San Francisco Federal Reserve President Mary Daly said that she thinks the policy is in a good place.

The Yen is picking up from five-month lows on Friday, supported by a somewhat softer US Dollar and hot Japanese inflation figures.

India FX Reserves, USD: $652.87B (December 9) vs previous $654.86B

Italy Producer Price Index (MoM) rose from previous 0.7% to 1.2% in November

Italy Producer Price Index (YoY) climbed from previous -2.8% to -0.5% in November

The AUD/USD pair trades inside Thursday’s trading range slightly above the two-year low of 0.6200 near 0.6230.

Russia Interest Rate Decision came in at 21% below forecasts (23%)

Headline SMEI recovered 0.2pts to 50.6 in December; average reading rebounded to above-50 level in Q4. While services activity improved, performance and expectations sub-indices stayed below 50. Manufacturing SMEs continued to outperform on a solid m/m increase in sales and new orders.