A report released by the University of Michigan on Friday showed consumer sentiment in the U.S. deteriorated by much more than previously estimated in the month of February. The University of Michigan said its consumer sentiment index for February was downwardly revised to 64.7 from a preliminary reading of 67.8. Economists had expected the index to be unrevised.

Existing home sales pulled back sharply in the month of January, according to a report released by the National Association of Realtors on Friday. NAR said existing home sales plunged by 4.9 percent to an annual rate of 4.08 million in January after surging by 2.9 percent to an upwardly revised rate of 4.29 million in December.

The euro area private sector managed to grow for the second straight month in February with the deepening contraction in France being offset by a moderate rebound in Germany, flash data from the purchasing managers' survey by S&P Global showed on Friday.The flash composite output index remained unchanged at 50.2 in February. Economists had forecast the indicator to rise to 50.5.

Germany's private sector growth picked up in February as services activity showed a steady expansion and manufacturing contracted at the slowest pace in two years, flash survey data from S&P Global revealed Friday. The flash composite output index came in at 51.0 in February, up from 50.5 in January. This was the highest reading in nine months and was above forecast of 50.8. A score above 50.0 i

The British pound strengthened against other major currencies in the Asian session on Friday, as the U.K. retail sales expanded at the fastest pace in eight months in January due to the rebound in food store sales volume.

France's private sector registered a deeper contraction in February as the drag from the service sector intensified, survey results from S&P Global revealed Friday. The HCOB flash composite output index dropped unexpectedly to 44.5 in February from 47.6 in January. The score signaled the steepest fall since September 2023. The reading was seen at 48.0.

UK retail sales expanded at the fastest pace in eight months in January due to the rebound in food store sales volume, the Office for National Statistics said Friday.
Retail sales volume increased 1.7 percent in January from December. The monthly growth confounded a revised fall of 0.6 percent in December.

Japan's core inflation accelerated to a 19-month high in January, bolstering the chances of another interest rate hike by the Bank of Japan. Core inflation that excludes fresh food rose more-than-expected to 3.2 percent from 3.0 percent in December, the Ministry of Internal Affairs and Communications said Friday. This was the fastest since June 2023 and was slightly above forecast of 3.1 percent.

The New Zealand dollar strengthened against other major currencies in the Asian session on Friday amid risk appetite, as traders seemed cautious and await clarity on U.S. President Donald Trump's trade policies and the outcome of Ukraine peace talks.

The Japanese yen weakened against other major currencies in the Asian session on Friday, after Japan's Finance Minister, Katsunobu Kato, said that increased long-term rates may put pressure on Japan's fiscal condition.

Flash composite Purchasing Managers' survey results from the euro area and the UK are due on Friday, headlining a busy day for the European economic news. At 2.00 am ET, the Office for National Statistics releases UK retail sales and public sector finance data. Economists forecast retail sales to grow 0.4 percent on month in January, in contrast to the 0.3 percent fall in December.

The U.S. dollar shed ground against its major counterparts on Thursday after data from the Labor Department showed a bigger than expected increase in U.S. jobless claims last week, a Conference Board report showed an unexpected drop in the reading ot its leading economic index.

Reversing most of the gains from the previous two months, the Conference Board released a report on Thursday showing an unexpected decrease by its reading on leading U.S. economic indicators in the month of January. The Conference Board said its leading economic index fell by 0.3 percent in January following a revised 0.1 percent uptick in December.

Eurozone consumer confidence strengthened for a second straight month and at a faster than expected pace to its highest level in four months in February, suggesting that pessimism among households in the single currency bloc is easing despite the increasing threat of a tariff war with the U.S.

Philadelphia-area manufacturing activity continued to expand in the month of February, according to a report released by the Federal Reserve Bank of Philadelphia on Thursday, although the index of activity in the sector pulled back sharply. The Philly Fed said its diffusion index for current general activity plunged to 18.1 in February after skyrocketing to 44.3 in January.

A report released by the Labor Department showed a modest increase by first-time claims for U.S. unemployment benefits in the week ended February 15th. The Labor Department said initial jobless claims rose to 219,000, an increase of 5,000 from the previous week's revised level of 214,000. Economists had expected jobless claims to inch up to 215,000.

The Japanese yen strengthened against other major currencies in the Asian session on Thursday, amid rising bets that the Bank of Japan (BoJ) would hike interest rates further. The safe-haven JPY also firmed on geopolitical worries.

The People's Bank of China maintained its interest rates unchanged for the fourth straight time on Thursday. The PBoC left its one-year loan prime rate unchanged at 3.10 percent. Likewise, the five-year LPR, the benchmark for mortgage rates, was retained at 3.60 percent. The decision matched expectations.

Producer prices data from Germany is the only major report due on Thursday, headlining a light day for the European economic news. At 2.00 am ET, Destatis is scheduled to publish Germany's producer prices for January. Producer price inflation is forecast to rise to 1.3 percent from 0.8 percent in December.

The U.S. dollar firmed against most of its major counterparts on Wednesday as traders digested the minutes from the Federal Reserve's most recent policy meeting, and continued to assess the potential impact of higher tariffs proposed by President Donald Trump.

Provided the U.S. economy remains near maximum employment, the minutes of the Federal Reserve's latest monetary policy meeting revealed officials want to see further progress on inflation before they consider resuming lowering interest rates.

After reporting a substantial increase by new residential construction in the U.S. in the previous month, the Commerce Department released a report on Wednesday showing housing starts pulled back by more than expected in the month of January. The Commerce Department said housing starts plunged by 9.8 percent to an annual rate of 1.366 million in January.

The euro weakened against other major currencies in the European session on Wednesday amid fears of fresh tariffs by the U.S. President Donald Trump spoke about the possibility of a 25% levy on imports of automobile, semiconductors and pharma products from April, weigh on sentiment.

UK consumer price inflation accelerated to a 10-month high in January on higher airfares and food prices, data from the Office for National Statistics showed on Wednesday. The consumer price index logged a 3.0 percent rise in January, following December's 2.5 percent increase. This was the fastest growth since March 2024. Prices were forecast to climb 2.8 percent.

The British pound strengthened against other major currencies in the European session on Wednesday, after U.K. consumer price inflation rose more than expected to a 10-month high in January.