The British pound weakened against other major currencies in the European session on Friday, after the U.K. economy contracted for the second straight month in October.

The Japanese yen declined against other major currencies in the Asian session on Friday amid risk-on mood by the investors, as the markets continue to react to the US Fed's widely expected third consecutive interest rate cut and the Fed's less hawkish than expected outlook for interest rates.

GDP and foreign trade from the UK and final inflation from Germany 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 GDP, industrial production and foreign trade figures are due. The economy is forecast to grow 0.1 percent in October, in contrast to the 0.1 percent fall in September.

Wholesale inventories in the U.S. increased by much more than expected in the month of September, according to a report released by the Commerce Department on Thursday. The Commerce Department said wholesale inventories climbed by 0.5 percent in September after edging down by a revised 0.1 percent in August. Economists had expected wholesale inventories to inch up by 0.1 percent.

Reflecting a sharp increase in the value of exports, the Commerce Department released a report on Thursday showing the U.S. trade deficit unexpectedly narrowed in the month of September. The Commerce Department said the trade deficit shrank to $52.8 billion in September from a revised $59.3 billion in August. Economists had expected the trade deficit to widen to $63.3 billion.

First-time claims for U.S. unemployment benefits rebounded by more than expected in the week ended December 6th, according to a report released by the Labor Department on Thursday. The report said initial jobless claims rose to 236,000, an increase of 44,000 from the previous week's revised level of 192,000. Economists had expected jobless claims to climb to 220,000.

Turkey's central bank slashed its benchmark rate at a sharper-than-expected pace on Thursday as demand conditions continue to support the disinflation process. The Monetary Policy Committee of the Central Bank of the Republic of Turkey, headed by Yasar Fatih Karahan, decided to cut the policy rate by 150 basis points to 38.00 percent. Markets anticipated only 100 basis point reduction.

The Swiss National Bank left its interest rate unchanged for the second straight meeting on Thursday and downgraded its inflation outlook. The SNB maintained its policy rate at zero percent, in line with expectations. The central bank had reduced the key rate by 175 basis points since March 2024. The bank exited its negative rate in 2022 after holding it for over seven years.

China's economy is forecast to expand more than previously estimated this year and the growth will depend more on domestic demand in the coming years, the World Bank said in its latest China Economic Update, released Thursday. The bank projected economic growth at 4.9 percent this year and 4.4 percent in 2026, as existing headwinds are expected to persist.

The monetary policy assessment from the Swiss National Bank is the top economic news due on Thursday. At 2.00 am ET, Statistics Sweden is set to publish consumer price data for November. Inflation is seen unchanged at 0.3 percent.

The Federal Reserve on Wednesday announced its widely expected decision to cut interest rates by another quarter point, matching the rate cuts seen in September and October. The Fed said it decided to lower the target range for the federal funds rate by 25 basis points to 3.50 to 3.75 percent.

Following two consecutive interest rate cuts, the Bank of Canada on Wednesday announced its widely expected decision to leave rates unchanged. The Bank of Canada said it decided to hold its target for the overnight rate at 2.25 percent, with the Bank Rate at 2.5 percent and the deposit rate at 2.20 percent.

China's consumer price inflation accelerated in November, while factory gate deflation deepened, data from the National Bureau of Statistics revealed on Wednesday. The consumer price index rose 0.7 percent on a yearly basis in November, following the 0.2 percent increase seen in October. The rate came in line with expectations and hit the highest since early 2024.

A report released by the Conference Board on Tuesday showed a continued decrease by its reading on leading U.S. economic indicators in the month of September. The Conference Board said its leading economic index fell by 0.3 percent in September, matching an upwardly revised dip in August.

U.S. small businesses turned more confident than expected in November on stronger sales growth expectations, but the uncertainty continued to rise as firms delayed their investment plans, survey data from the National Federation of Independent Business showed on Tuesday.

The U.S Dollar dropped against major currencies during the week ended December 5 amidst strong expectations of a Fed rate cut on December 10.

The euro strengthened against other major currencies in the early European session on Monday, after the European Central Bank policymaker Isabel Schnabel said that the bank would keep the interest rates unchanged and the next move is likely to be a hike.

Eurozone investor sentiment improved at the end of the year but the negative reading suggests that the economy remains in the phase of stagnation, survey results from the behavioral research institute Sentix showed on Monday.

The investor confidence index rose to -6.2 in December from -7.4 in November. The reading came in line with expectations.

Germany's industrial production growth accelerated unexpectedly in October, strengthening hopes of economic recovery. Industrial output logged a monthly growth of 1.8 percent in October after posting a revised 1.1 percent rise in September, Destatis reported Monday. Economists were expecting the growth to ease sharply to 0.2 percent from September's initially estimated rise of 1.3 percent.

China's exports rebounded in November on strong demand from the EU and the trade surplus hit the $1 trillion mark in the year to November, official data showed on Monday. Exports grew 5.9 percent year-on-year in November, reversing a 1.1 percent fall in October, the General Administration of Customs said. Shipments were forecast to expand 3.8 percent.

Industrial production from Germany and investor sentiment from the euro area are the top economic news due on Monday. At 2.00 am ET, Destatis releases Germany's industrial production data for October. Economists expect output to grow 0.2 percent on a monthly basis, slower than the 1.3 percent rise in September.

Preliminary data released by the University of Michigan on Friday showed consumer sentiment in the U.S. has improved much more than anticipated in the month of December. The University of Michigan said its consumer sentiment index climbed to 53.3 in December from 51.0 in November. Economists had expected the consumer sentiment index to rise to 52.0.

A long-delayed report released by the Commerce Department on Friday 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 0.3 percent in September, matching the growth seen in August along with economist estimates.

The euro area economy logged a faster-than-estimated growth in the third quarter, underpinned by government spending and investment, revised data from Eurostat showed on Friday. Gross domestic product grew 0.3 percent sequentially compared to a marginal growth of 0.1 percent in second quarter. The third quarter growth was revised up from 0.2 percent.

UK house prices stagnated in November ahead of the Autumn budget announcement, data from the mortgage lender Halifax revealed Friday. House prices registered a nil growth in November after a 0.5 percent rise in October. Prices were forecast to climb 0.2 percent. Nonetheless, average property prices hit another new record high of GBP 299,892.