The Japanese yen strengthened against other major currencies in the Asian session on Friday, after the Bank of Japan left its key interest rate unchanged after a hike last month as underlying inflation is assessed to be consistent with the 2 percent inflation target.

The French economy contracted unexpectedly in the third quarter on weak investment and exports, amid high borrowing costs and social unrest clouding the outlook. Gross domestic product fell 0.1 percent sequentially after stagnating in the second quarter, preliminary data from the statistical office INSEE revealed Friday. Economists had forecast the economy to expand 0.1 percent.

The Bank of Japan left its key interest rate unchanged on Friday after a hike last month as underlying inflation is assessed to be consistent with the 2 percent inflation target. The policy board, governed by Ueda Kazu, voted 8-1 in favor of holding the interest rate at 1.25 percent, the highest since 1995.

The European Central Bank left its key interest rates unchanged on Thursday, as expected, after raising them in September, and the chief Christine Lagarde revealed her decision to step down next year, as policymakers wait for the effect of the past moves amid surging inflationary pressures and study the impact of the turmoil in French bond yields.

Economic growth in the U.S. exceeded economist estimates in the third quarter of 2026, according to a report released by the Commerce Department on Thursday. The Commerce Department said real gross domestic product shot up by 3.4 percent in the third quarter after jumping by 2.2 percent in the second quarter. Economists had expected GDP to surge by 3.1 percent.

A closely watched report released by the Commerce Department on Thursday showed consumer prices in the U.S. increased in line with economist estimates in the month of September. The Commerce Department said its personal consumption expenditures (PCE) price index climbed by 0.5 percent in September after rising by 0.3 in August. The increase matched expectations.

The Labor Department released a report on Thursday unexpectedly showing a slight dip in first-time claims for U.S. unemployment benefits in the week ended October 24th. The report said initial jobless claims edged down to 194,000, a decrease of 1,000 from the previous week's revised level of 195,000. Economists had expected jobless claims to rise to rise to 199,000.

Eurozone economic sentiment deteriorated to a four-month low in October as sentiment weakened across most sectors, monthly survey data from the European Commission revealed Thursday. The economic confidence index dropped to 96.9 in October from revised 97.5 in the previous month.

The Canadian dollar strengthened against other major currencies in the Asian session on Thursday, as the crude oil prices surged after reports suggest possible U.S. attacks on Iran by next week, fueling supply disruption concerns for an indefinite period.

After raising interest rates for the first time in three years last month, the Federal Reserve on Wednesday announced its widely expected decision to leave interest rates unchanged following its latest meeting. The Fed said it decided to maintain the target range for the federal funds rate at 3.75 to 4.0 percent in support of its dual goals.

After leaving interest rates unchanged for seven consecutive meetings, the Bank of Canada on Wednesday announced its widely expected decision to raise rates by a quarter point. The Bank of Canada said it decided to increase its target for the overnight rate by 25 basis points to 2.5 percent, with the Bank Rate at 2.75 percent and the deposit rate at 2.45 percent.

German consumer confidence is set to weaken in November due to rising inflation concerns and subdued income prospects, survey data from the Nuremberg Institute for Market Decisions and the GfK market research institute showed Wednesday. The forward-looking consumer climate index fell slightly to -30.8 in November from -30.6 in October. The reading was expected to improve to -30.1.

The Reserve Bank of New Zealand unexpectedly retained its key interest rate on Wednesday after two consecutive rate hikes and signaled tighter policy ahead. The Monetary Policy Committee, governed by Anna Breman voted 4-3 to hold the Official Cash Rate at 2.75 percent, defying market expectations for a 25 basis point hike.

Consumer confidence in the U.S. has unexpectedly seen a substantial improvement in the month of October, according to a report released by the Conference Board on Tuesday. The Conference Board said its consumer confidence index jumped to 91.7 in October from an upwardly revised 84.2 in September.

A report released by the Commerce Department on Tuesday showed a modest pullback in new home sales in the U.S. in the month of September. The Commerce Department said new home sales fell by 0.6 percent to an annual rate of 676,000 in September after surging by 5.1 percent to a revised rate of 680,000 in August.

Largely reflecting a surge in orders for transportation equipment, the Commerce Department released a report on Tuesday showing new orders for U.S. manufactured durable goods shot up by more than expected in the month of September. The Commerce Department said durable goods orders jumped by 1.8 percent in September following a revised 0.1 percent uptick in August.

French consumer confidence declined to its lowest level in more than 13 years in October mid bond selloffs and expanding protests, signalling pressure on spending, survey results published by the statistical office INSEE showed Tuesday. The consumer confidence index fell to 80 in October from 85 in September.

The U.S. Dollar retreated and the Dollar Index edged down during the week ended October 23 that witnessed renewed AI jitters and geopolitical tensions. Expectations of a monetary policy pause by the Federal Reserve kept the Dollar Index subdued. The debt-market-turmoil in Fance also weighed on currency market sentiment.

German business sentiment improved for the sixth straight month in October, underpinned by more optimistic expectations, monthly survey data from the ifo Institute showed Monday. The business sentiment index rose to 90.2 in October from 89.9 in the previous month, marking the highest score since May 2023.

The University of Michigan released a report on Friday showing consumer sentiment in the U.S. deteriorated by far less than previously estimated in the month of October. The report said the University of Michigan's consumer sentiment index for October was upwardly revised to 48.0 from a preliminary reading of 46.3.

The euro area private sector softened to a four-month low in October as activity in France shifted back into contraction amid tightening financial conditions and rising political pressures, flash purchasing managers' survey data from S&P Global revealed Friday. The composite output index fell to 51.9 in October from 53.1 in the previous month, falling below the economist forecast of 52.7.

UK retail sales declined more than expected in September as warm weather weighed on clothing and supermarket sales, data released by the Office for National Statistics showed on Friday. Retail sales decreased 0.4 percent in September, reversing a rise of 0.7 percent in August and exceeded economists' forecast of a 0.1 percent fall.

Euro area consumer sentiment eroded at a faster-than-expected pace in October to reach its lowest level in five months as several countries witness public unrest against a host of issues from the rising cost of living to poor education infrastructure.

The Conference Board released a report on Thursday showing its reading leading U.S. economic indicators unexpectedly came in flat in the month of September. The report said the leading economic index was unchanged in September after edging down by 0.1 percent in August. Economists had expected the index to dip by 0.2 percent.

First-time claims for U.S. unemployment benefits unexpectedly declined in the week ended October 17th, according to a report released by the Labor Department on Thursday. The report said initial jobless claims fell to 194,000, a decrease of 6,000 from the previous week's revised level of 200,000.