DXY: Break above 106.80 to open up a return towards 108 – SocGen

EUR/USD is turning lower toward 1.1600 in the European session on Friday. The softer risk tone lifts the haven demand for the US Dollar, weighing on pair. Eurozone GDP second estimate confirmed with the preliminary reading of 0.2% in the third quarter, having little to no impact on the Euro. 

GBP/USD is off the lows, still deep in the red near 1.3150 in European trading on Friday. The pair declines as the Pound Sterling faces headwinds from rising concerns over fiscal discipline and political stability in the UK. Late Thursday,  PM Starmer and Finance Minister Reeves dropped the plan to raise income tax rates. 

Gold rebounds slightly from the daily low and trades with a mild positive bias during the first half of the European session on Friday, though it remains below the $4,200 mark. A growing number of Federal Reserve policymakers signaled caution on further easing amid the lack of economic data, prompting traders to trim their bets for another rate cut in December.

Bitcoin, Ethereum and Ripple trade in red on Friday after correcting more than 5%, 10% and 2%, respectively, so far this week. BTC has slipped below the $100,000 key level, while ETH and XRP have faced rejection at their resistance levels, signaling that bears remain firmly in control and that a deeper correction may be underway.

The Bank of Japan once again finds itself walking a tightrope between political pressure, economic data, and market expectations. With interest rates still anchored at 0.5%, speculation is growing over when Governor Ueda will pull the trigger on the next hike.

Solana (SOL) marks the third consecutive week of losses, dropping over 13% so far this week. The two-week-old Solana spot Exchange Traded Funds (ETFs) in the US have recorded the lowest net inflows ever, suggesting softer institutional demand.