Sentiment gauges in Europe and the US economy in the spotlight

The US dollar faced some profit-taking and lost momentum in line with a slight pullback in US yields, as risk sentiment improved mildly. Meanwhile, business activity in Europe for October remains lacklustre, showing little sign of recovery.

Here is what you need to know on Friday, October 25:

The US Dollar Index (DXY) experienced a knee-jerk on Thursday, receding from recent tops past the 104.00 barrier. The Durable Goods Orders are due seconded by the final Michigan Consumer Sentiment.

After bottoming out around 1.0760, EUR/USD regained some balance and trespassed the key 1.0800 barrier. Germany’s Business Climate tracked by the IFO institute will take centre stage in Europe ahead of the ECB’s Consumer Inflation Expectations and M3 Money Supply figures. In addition, the ECB’s McCaul is due to speak.

GBP/USD left behind three straight days of losses and approached the key 1.3000 yardstick amidst decent gains. The GfK’s Consumer Confidence will grab all the attention at the end of the week across the Channel.

The selling pressure in the Greenback and lower US yields weighed on USD/JPY, sending it back below 152.00. The final Coincident Index and Leading Economic Index are next on tap followed by the Tokyo CPI figures.

AUD/USD ended the session with marginal gains following the weaker US Dollar. Next on tap in Oz will be the release of the RBA’s Monthly CPI Indicator on October 30.

Demand concerns coupled with uncertainty around the upcoming US elections and the Middle East weighed on crude oil prices and dragged the barrel of the American WTI below the $70.00 mark per barrel.

Gold prices reclaimed some ground lost in the previous session and retested the area above the $2,730 mark per ounce troy helped by the offered tone in the Greenback and shrinking US yields. Silver prices traded in a volatile fashion, alternating gains with losses around the $33.60 zone.