Pound Sterling’s (GBP) post-BoE push through 1.34 has reversed alongside a broader US Dollar (USD) rebound, leaving GBP/USD back near the middle of its recent range.

The Euro (EUR) failed to sustain gains following the European Central Bank (ECB) decision, even as unchanged rates and upgraded growth projections reinforced the view that the easing cycle has ended, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

The Canadian Dollar (CAD) is edging lower in tandem with its peers as the US Dollar (USD) firms into the end of the week, though downside pressure remains contained.

The US Dollar (USD) is closing the week on a stronger footing, rising against all major currencies, with the Japanese Yen (JPY) the clear laggard despite the Bank of Japan’s rate hike to 0.75%.

Eurozone Consumer Confidence below forecasts (-14) in December: Actual (-14.6)

United States UoM 1-year Consumer Inflation Expectations came in at 4.2%, above forecasts (4.1%) in December

United States Michigan Consumer Expectations Index registered at 54.6, below expectations (55) in December

United States Michigan Consumer Sentiment Index came in at 52.9, below expectations (53.4) in December

United States UoM 5-year Consumer Inflation Expectation in line with forecasts (3.2%) in December

United States Existing Home Sales (MoM) below forecasts (4.2M) in November: Actual (4.13M)

United States Existing Home Sales Change (MoM) dipped from previous 1.2% to 0.5% in November

Japan’s House of Councilors Finance Minister Satsuki Katayama spoke at an online meeting with other G7 finance ministers on Friday.

Gold (XAU/USD) shows limited movement on Friday, as a resilient US Dollar (USD) caps upside momentum. At the time of writing, XAU/USD hovers near $4,321, holding above a daily low of $4,309.

The President of the New York Federal Reserve (Fed), John Williams, spoke at an interview conducted by the media channel CNBC on Friday.

The Euro (EUR) rebounds against the British Pound (GBP) on Friday, as investors reassess the monetary policy outlooks of both the Bank of England (BoE) and the European Central Bank (ECB) following their interest rate decisions on Thursday.

Canada New Housing Price Index (YoY) fell from previous -1.8% to -1.9% in November

Canada New Housing Price Index (MoM) in line with forecasts (0%) in November

Canada Retail Sales ex Autos (MoM) came in at -0.6% below forecasts (0.2%) in October

Canada Retail Sales (MoM) came in at -0.2% below forecasts (0%) in October

European Central Bank (ECB) policymaker Olaf Sleijpen spoke at a news conference in Amsterdam, Netherlands, on Friday.

The Euro (EUR) trades slightly firmer against the Swiss Franc (CHF) on Friday after slipping to over three-week lows in the previous day following the European Central Bank’s (ECB) monetary policy decision.

The Bank of Japan (BOJ) unanimously voted to raise the policy rate 25bps to 0.75% (widely expected) and reinforced its tightening bias.

Today’s decision by the BoJ to hike its policy rate by 25 bps as expected has failed to support the JPY. Indeed, USD/JPY has pushed above the 157.00 level this morning marking its highest levels for almost a month.

EUR/USD languishes near 1.1710 on Friday's US session opening times, down from the three-month highs, above 1.1800, hit earlier this week. The pair is on track to close the week with moderate losses, as the US Dollar picks up against its main peers.

GBP/USD is trading in a tight range around 1.3375 after testing an intra-day high of 1.3446 yesterday.

Pound Sterling (GBP) initially surged following the Bank of England’s (BoE) 25bp rate cut to 3.75%, but gains later eased as markets digested the less dovish-than-expected guidance.

EUR/USD softened to 1.1710 after French PM Lecornu confirmed that Parliament will miss year-end budget approval, forcing a special rollover law.

The European Central Bank (ECB) kept policy rates unchanged, reinforcing its flexible, data-dependent stance. While not committing to a hike, President Lagarde emphasized that all options remain on the table, supporting expectations that the easing cycle may have ended.

Mexico Private Spending (YoY) climbed from previous -0.4% to 1.4% in 3Q

Mexico Private Spending (QoQ) increased to 1.1% in 3Q from previous -0.4%