Huge retail sales figure gives sterling a boost in the short term

• US dollar strength dominates post Fed

• US initial jobless claims in line, but PMI weaker

• Quiet data calendar and quiet markets into the weekend

• Bank of Japan hold policy steady for now

Following the past few days of volatility, Thursday's markets actually were a relative example of tranquillity. The same trends that have been governing markets for the past few weeks continued with little impetous to stymie their ascent.

The market is sat there waiting for yet another excuse to take the greenback to greater heights. Market data is still a lot stronger than the remainder of the G10 and with it we have an industry that is simply wanting the FOMC to signal further that rate hikes are obvious and forthcoming within the US economy.

UK retail sales were the strongest in a decade on a yearly basis and shows that the UK consumer was completely taken in by the 'Black Friday ' sales tactics of the major retailers. We have longer term doubts about the benefits of such sales. While the near term deflation is good for consumers there is little evidence that retailers are seeing higher profits. It also signals that purchasing intent is being dragged forward from typical sales periods and that the average consumer will become minded to not pay full price for goods into the Christmas period. For now, a 6.4% increase on the year is being seen as a result.

Today's markets are relatively quiet but we would recommend watching for the stronger USD through the day into the weekend as a result of low liquidity.

Have a great weekend.