Public sector finances data from the UK is the only major report due on Tuesday, headlining a light day for the European economic news. At 2.00 am ET, the Office for National Statistics is scheduled to issue UK public sector finance data. The budget deficit is forecast to widen to GBP 20.7 billion in September from GBP 18 billion in August.

China's economic growth eased less than feared in the third quarter, indicating that the country remains on track to achieve its full year target despite tariff tensions and deepening property market downturn. Gross domestic product expanded 4.8 percent on a yearly basis in the third quarter after rising 5.2 percent a quarter ago, the National Bureau of Statistics reported Monday.

Current account from the euro area and producer prices from Germany are due on Monday, headlining a light day for the European economic news. At 2.00 am ET, Destatis is scheduled to issue Germany's producer prices for September. Economists expect producer prices to grow 0.1 percent month-on-month, in contrast to the 0.5 percent fall in August.

The British pound weakened against other major currencies in the European session on Friday, amid rising expectations that the Bank of England (BoE) will cut interest rates further this year.

Eurozone inflation accelerated as initially estimated in September to the highest level in five months. Inflation rose to 2.2 percent in September from 2.0 percent in August. Core inflation, which excludes prices of food and energy, increased slightly to 2.4 percent in September from 2.3 percent in August. Services inflation rose to 3.2 percent from 3.1 percent.

The Japanese yen strengthened against other major currencies in the European session on Friday amid increased risk-off mood, as heightened concerns about the U.S. credit woes weighed on markets.

The commodity currencies such as Australia, the New Zealand and the Canadian dollars weakened against their major currencies in the Asian session on Friday, amid the escalating trade tensions between the U.S. and China and renewed concerns about the U.S. banking sector after bad loans recently led to the bankruptcies of two auto industry-related companies, First Brands and Tricolor Holdings. Traders also resorted to profit taking after the recent gains in the markets.

A report released by the National Association of Home Builders on Thursday showed homebuilder confidence in the U.S. has improved by much more than anticipated in the month of October. The report said the NAHB/Wells Fargo Housing Market Index jumped to 37 in October after holding steady at 32 in September. Economists had expected the index to inch up to 33.

The Federal Reserve Bank of Philadelphia released a report on Thursday showing a substantial pullback by its reading on regional manufacturing activity in the month of October. The Philly Fed said its diffusion index for current general activity plummeted to a negative 12.8 in October after spiking to a positive 23.2 in September, with a negative reading indicating contraction.

The British pound strengthened against other major currencies in the European session on Thursday, after the UK economy expanded slightly as expected in August on the back of the production sector.

The New Zealand dollar strengthened against other major currencies in the Asian session on Thursday. The U.S. Democrats and Republicans prepare for a prolonged government shutdown after the Senate failed to pass legislation restoring funding amid escalating U.S.-China trade tensions.

The UK economy expanded slightly as expected in August on the back of the production sector. Real gross domestic product advanced 0.1 percent month-on-month in August, reversing a revised 0.1 percent decline in July. Total production in the industrial sector grew 0.4 percent compared to July, while services activity remained flat and the construction sector contracted 0.3 percent.

The Japanese yen weakened against other major currencies in the Asian session on Thursday, with uncertainty surrounding the Liberal Democratic Party's leadership race following its coalition split with Komeito.

The Australian dollar weakened against other major currencies in the Asian session on Thursday, after data showed that Australia's unemployment rate unexpectedly rose to a nearly four-year high in September signaling expectations for further policy easing.

National accounts and foreign trade data from the UK and final inflation from Italy are due on Thursday, headlining a light day for the European economic news.

Economic activity in the U.S. has shown little change since early September, according to the Federal Reserve's Beige Book.

Mortgage applications for house purchase in the U.S. decreased for a third week in a row, survey results from the Mortgage Bankers Association showed on Wednesday.
The market composite index, which measures the house purchase mortgage loan application volume, dropped a seasonally adjusted 1.8 percent in the week ended October 10 following a 4.7 percent decline in the previous week, results of th

New York manufacturing activity has seen a significant turnaround in the month of October, according to a report released by the Federal Reserve Bank of New York on Wednesday. The New York Fed said its general business conditions index surged to a positive 10.7 in October after plunging to a negative 8.7 in September, with a positive reading indicating growth.

Canadian shares are likely to open on a positive note Wednesday morning, tracking the firm trend in European markets, and higher commodity prices.

The undertone is likely to remain firm amid expectations of an interest rate cut by the Federal Reserve at its upcoming monetary policy meeting.

Eurozone industrial production logged a monthly fall in August, reflecting the uncertainty surrounding the global trade environment. Industrial output dropped 1.2 percent month-on-month, in contrast to the 0.5 percent increase in July, Eurostat said Wednesday. However, the decline was less severe than the forecast of 1.6 percent.

The UK stock market is down in negative territory on Wednesday, unlike its peers Germany and France, which have moved higher thanks to a good show by stocks from the luxury sector after French major LVMH reported better-than-expected sales in the third quarter.

The euro strengthened against other major currencies in the European session on Wednesday, as European shares traded higher with French markets outperforming their regional peers, after LVMH, the owner of Louis Vuitton and Christian Dior, unexpectedly returned to sales growth in the third quarter.

China's consumer prices declined more than expected in September on weaker domestic demand and oversupply, and producer prices remained in negative territory for the 36th straight month, highlighting the persistent deflationary pressure.

China's consumer prices declined more than expected in September on weaker domestic demand and oversupply, and producer prices remained in deflationary pressures for the 36th straight month, highlighting the persistent deflationary pressure. Consumer prices dropped 0.3 percent on a yearly basis in September, the National Bureau of Statistics reported Wednesday.

The U.S. dollar continued to be weaker against other major currencies in the Asian session on Wednesday, following comments made by Federal Reserve (Fed) Chair Jerome Powell that strengthened bets on an interest rate drop this month.