After trending higher over the past couple weeks, the value of the U.S. dollar has fluctuated over the course of trading on Friday.

A report released by the University of Michigan on Friday showed an unexpected deterioration by U.S. consumer sentiment in the month of October. The University of Michigan said its consumer sentiment index fell to 68.9 in October after climbing to 70.1 in September. Economists had expected the index to inch up to 70.8.

With a decrease in prices for goods offsetting an increase in prices for services, the Labor Department released a report on Friday showing producer prices in the U.S. were unexpectedly unchanged in September. The Labor Department said its producer price index for final demand came in flat in September after rising by 0.2 percent in August.

The British pound weakened against other major currencies in the European session on Friday, after the release of upbeat U.K. monthly factory data and an expected GDP growth in August.

The UK economy returned to growth in August but the pace of expansion was weaker than in the first half of the year, official data revealed Friday. The real economy grew 0.2 percent in August after showing nil growth in July and June, the Office for National Statistics said. The rate came in line with expectations.

The Antipodean currencies such as the Australia and the New Zealand dollars strengthened against their major currencies in the Asian session on Friday, as investor sentiment boosted after data showed the bigger-than-expected increase in U.S. consumer prices further offset optimism the U.S. Fed will continue to aggressively lower interest rates in the coming months. China is also falling as the markets await potential fiscal stimulus announcements on Saturday.

The Bank of Korea lowered its base rate for the first time in more than four years on Friday, in order to stimulate economy as inflation weakened to the lowest since early 2021 and household debt began to slow on tight macroprudential policies. The Monetary Policy Board headed by Rhee Chang Yong decided to cut the Base Rate by 25 basis points to 3.25 percent from 3.50 percent.

Monthly GDP estimates, industrial production and foreign trade from the UK and final inflation from Germany are the top economic news due on Friday. At 2.00 am ET, the Office for National Statistics releases UK GDP, industrial output and foreign trade figures. The economy is forecast to grow 0.2 percent on month in August after remaining flat in July.

Consumer prices in the U.S. increased by slightly more than expected in the month of September, according to a report released by the Labor Department on Thursday. The Labor Department said its consumer price index rose by 0.2 percent in September, matching the increases seen in August and July. Economists had expected consumer prices to inch up by 0.1 percent.

The Labor Department released a report on Thursday showing first-time claims for U.S. unemployment benefits increased by much more than expected in the week ended October 5th. The report said initial jobless claims climbed to 258,000, an increase of 33,000 from the previous week's unrevised level of 225,000. Economists had expected jobless claims to edge up to 230,000.

The World Bank lifted its growth projection for South Asia citing strong domestic demand in India and faster recoveries in most other countries in the region. In its twice-yearly regional outlook, released Thursday, the World Bank said South Asia will expand 6.4 percent in 2024 compared to 6.0 percent estimated previously in April. The growth outlook for the next year was raised to 6.2 percent.

The Japanese yen strengthened against other major currencies in the European session on Thursday, after the Bank of Japan deputy Governor Himino said that the central bank would hike rates if it had more confidence in forecasts.

UK house prices increased for the first time in two years in September as expectations about future interest rate cuts lifted housing market activity, survey data published by Royal Institution of Chartered Surveyors, or RICS, showed Thursday. The house price balance rose to 16 percent in September from a flat result in August. The balance turned positive for the first time since October 2022.

The Canadian dollar weakened against other major currencies in the early European session on Thursday, as crude oil prices fell extending recent losses, as data showing an unexpected big jump in crude inventories outweighed possible supply disruptions due to Hurricane Milton and Middle East tensions.

The Antipodean currencies such as the Australia and the New Zealand dollars strengthened against their major currencies in the Asian session on Thursday, as traders remain optimistic about more interest rate cuts by the U.S. Fed, and several other central banks. The minutes from the U.S. Fed's September meeting showed officials agreed to cut interest rates but were unsure how aggressive to get.

The account of monetary policy meeting of the European Central Bank is due on Thursday, headlining a light day for the European economic news. At 2.00 am ET, Destatis is scheduled to issue Germany's retail sales data for May. Sales had declined 1.2 percent on month in April. At 4.00 am ET, Italy's statistical office ISTAT publishes industrial production for August.

A "substantial majority" of Fed policymakers supported an interest rate cut in September as they assessed that risks to the employment and inflation goals were almost in balance, the minutes of the latest rate-setting session showed on Wednesday.

The Reserve Bank of India maintained its interest rate for the tenth straight meeting on Wednesday, and shifted its monetary policy stance to neutral, paving the way for the first interest rate cut in four years as inflation is expected to moderate. The RBI Monetary Policy Committee, led by Governor Shaktikanta Das, voted 5-1 to keep the policy repo rate unchanged at 6.50 percent.

The New Zealand dollar weakened against most major currencies in the Asian session on Wednesday, after the Reserve Bank of New Zealand slashed its benchmark rate by 50 basis points, as inflation is converging to the target midpoint, while economic growth is expected to remain subdued in the near term amid restrictive monetary policy.

Germany's trade surplus increased in August on an unexpected increase in exports amid a bigger-than-expected decline in imports, official data showed on Wednesday. Exports posted a monthly growth of 1.3 percent in August following July's 1.7 percent increase, Destatis reported. This was the second consecutive increase. Shipments were forecast to fall 1.0 percent.

Foreign trade from Germany is the only major economic report due on Wednesday, headlining a light day for the European economic news. At 2.00 am ET, Destatis is slated to release Germany's foreign trade data for August. Exports are forecast to fall 1.0 percent on month, reversing a rise of 1.7 percent in July. Economists expect imports to drop 2.5 percent after a 5.4 percent gain.

The Reserve Bank of New Zealand slashed its benchmark rate by 50 basis points on Wednesday, as inflation is converging to the target midpoint, while economic growth is expected to remain subdued in the near term. The Monetary Policy Committee led by Governor Adrian Orr, decided to reduce the Official Cash Rate to 4.75 percent from 5.25 percent. The outcome of the meeting matched expectations.

Optimism among small businesses in the U.S. was largely unchanged in September, but the feeling of uncertainty among them was the highest ever, results of a monthly survey by the National Federation of Independent Business (NFIB) showed Tuesday, apparently due to concerns over the economy and the outcome of the upcoming election.

The Chinese government is planning more steps to support economic growth and is confident of achieving its full year economic target, the country's top state planner said Tuesday, and announced more funding initiatives for projects, but defied expectations by not unveiling any major stimulus.

Germany's industrial production expanded more than expected in August after falling in the previous month. Industrial output grew 2.9 percent on month in August, reversing a revised 2.9 percent decline in July. Economists had expected a 0.8 percent rebound for the month. Production in the automobile industry fluctuated considerably in the recent months.