EUROPEAN FX UPDATE: DXY pulls back after four straight sessions of gains this week

FX

USD: DXY -0.2%; 106.48

Pulling back after another surge on Thursday which saw a high of 107.07 (vs low 106.38), with hawkish Powell keeping the buck afloat in late hours.
Fed Chair Powell struck a hawkish tone as he stated that the economy is not sending signals that the Fed needs to be in a hurry to lower interest rates; money markets now price in around a 63% chance of a 25bps cut in December versus 80% pre-Powell.
Profit-taking cannot be discounted after DXY gained for four straight days this trading week thus far.
Ahead, US retail sales and commentary from Fed's Goolsbee (2025 Voter, Dove), Collins (2025 Voter, Neutral), Williams (Voter, Neutral), and Barkin (2024 Voter, Neutral).
DXY resides towards the bottom of a 106.47-106.96 parameter.

EUR: EUR/USD +0.3%; 1.0563

Benefitting from a softer Dollar and seeing a rebound from yesterday's worst levels (1.0496 low) as the pair attempts to climb back to yesterday's best (1.0582).
No tier-1 data slated for Europe; French Final CPI Y/Y revised slightly higher while M/M was unrevised - no price action seen in EUR at the time.
EUR/USD OpEx: 1.0500 (3.2bln), 1.0550 (1bln), 1.0575-90 (800mln), 1.0600 (2.6bln), 1.0650 (1.1bln).
EUR/USD currently resides in a 1.0524-1.0565 range.

GBP: GBP/USD U/C; 1.2661

Relatively flat and unable to benefit from the pullback in the Dollar following downbeat GDP data across the board.
UK GDP Prelim QQ (Q3) 0.1% vs. Exp. 0.2% (Prev. 0.5%), YY (Sep) 1.0% vs. Exp. 1.1% (Prev. 1.0%, Rev. 1.1%), MM (Sep) -0.1% vs. Exp. 0.2% (Prev. 0.2%).
GBP/USD resides in a 1.2653-1.2690 range and within Thursday's 1.2627-1.2720 parameter.

JPY: USD/JPY -0.5%; 155.46

The outperforming G10s after a week of underperformance with desks citing pre-weekend profit-taking, whilst Japanese GDP data mostly matched or topped estimates.
Jawboning overnight saw Japanese Finance Minister Kato suggesting they will take appropriate action against excessive FX moves, while he added that one-sided, sharp moves were seen in the FX market and it is important for FX rates to move stably reflecting fundamentals.
Some also attributed JPY's strength to reports that BoJ Governor Ueda is to deliver a speech and hold a press conference on Monday 18th, providing fewer reasons to hold onto JPY risk.
USD/JPY overnight hit a fresh weekly high of 156.74 before pulling back to a current 155.40 low, with Thursday's trough at 155.32 and then Wednesday's low at 154.33.

Antipodeans: AUD/USD +0.3%; 0.6474, NZD/USD +0.4%; 0.5874

Modestly firmer as DXY pulls back from its weekly highs, in turn offering some reprieve to peers alongside the base metals complex.
Chinese Industrial Production disappointed but Retail Sales topped forecasts, while Chinese Home Prices showed a steeper Y/Y drop although the M/M decline moderated.
AUD/USD rebounded after printing a 0.6439 low yesterday to trade in a current parameter between 0.6446-0.6475.
NZD/USD sits in a 0.5839-0.5875 range as it eyes yesterday's 0.5888 peak.