At 14:30 (GMT+2), the focus will shift to U.S. data on personal income and spending, along with the core PCE index. Forecasts suggest a slowdown from 0.3% to 0.2% m/m and a year-on-year figure of 2.9%, while the broader PCE may rise from 0.2% to 0.3%.

In Europe, Spain’s Q2 GDP grew from 0.7% to 0.8% q/q and from 2.8% to 3.1% y/y. Investors will also watch ECB officials’ speeches, though no new policy signals are expected.

Markets remain cautious about the eurozone outlook, which looks weak. Meanwhile, U.S. GDP for Q2 was revised upward from 3.3% to 3.8%, the fastest pace in two years, adding pressure on the euro.

GBP/USD

The pound is attempting a modest rebound after Thursday’s sharp drop, testing 1.3355 in Friday’s session. Traders await U.S. PCE data later today, seen as the Fed’s preferred inflation gauge. Forecasts point to 2.9% y/y and 0.2% m/m for the core index.

At 16:00 (GMT+2), U. Michigan inflation expectations will be released, with analysts expecting no change from 4.8% (1-year) and 3.9% (5-year).

The pound remains weighed down by sluggish U.K. growth. GDP stagnated in July after a 0.4% rise in June, with y/y growth at just 1.4%. Investors are increasingly expecting the Bank of England to maintain its dovish stance.

NZD/USD

The New Zealand dollar stays under pressure near April lows, with traders partially closing shorts. The U.S. dollar gained momentum on strong Q2 GDP data (3.8% vs 3.3% prior) and durable goods orders rising 2.9% in August.

Jobless claims also supported the dollar: initial claims fell to 218K, below expectations. In New Zealand, ANZ consumer confidence rose to 94.6 in September, offering modest support. The RBNZ meets on October 8, with markets pricing in a chance of further easing after cutting rates to 3.00% in August.

USD/JPY

The dollar is edging lower against the yen, testing 149.60 after hitting fresh highs. Tokyo CPI slowed in September: headline CPI fell to 2.5% (from 2.6%), while core inflation dropped to 2.5% (from 3.0%).

Overall inflation is losing steam, raising concerns as markets still expect the Bank of Japan to tighten policy before year-end. Political uncertainty also looms, with Japan set to elect a new prime minister in October.

XAU/USD

Gold consolidates near record highs, set for a modest weekly gain. The rally lost steam after strong U.S. GDP data (3.8% vs 3.3% prior) and better-than-expected jobless claims.

Still, demand for gold remains strong amid political tensions in France and Japan, and global rate cuts—including last week’s 25bp cut from the Fed—continue to support the metal.