Dollar Firm After US Inflation Report

Pound erases weekly gains

GBP/USD turned south and erased its weekly gains on Thursday. The figures out yesterday showed that US inflation remained stuck at 3.7% in September, raising the chances that the Fed will be forced to hike interest rates again. In the European morning, the pair seems to have stabilized near $1.2200. Bank of England Governor Andrew Bailey will deliver a speech at the Institute of International Finance annual meeting.

Data: 9:00 BOE Gov Bailey Speaks

EUR Weakens against the Dollar

EUR/USD lost nearly 100 pips on Thursday but found support before testing 1.0500. Early Friday, the pair clings to small daily gains slightly below $1.0550. European Central Bank President Christine Lagarde will be speaking at the International Monetary Fund's annual conference later on today.

Data: 14:00 ECB President Lagarde Speaks

Dollar firm after US inflation report

The Consumer Price Index (CPI) in the US rose 3.7% on a yearly basis in September, the US Bureau of Labor Statistics reported on Thursday. This reading matched August's increase and came in above the market expectation of 3.6%. Other details of the report revealed that the annual Core CPI inflation, which excludes volatile food and energy prices, edged lower to 4.1% from 4.3% as forecast. The probability of another 25 basis points Federal Reserve rate hike in December climbed above 30% after this data, according to the CME Group FedWatch Tool.

Data: 14:00 FOMC Member Harker Speaks, 15:00 Prelim UoM Consumer Sentiment - forecast 67.2, previous 68.1

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