US President Donald Trump hit markets with a fresh tariff threat on Friday, continuing his lashout at China over their decision to impose even stricter export licensing requirements on foreign entities trying to move critical rare earths minerals out of China.

The EUR/USD pair recovers some ground on Friday, climbing above 1.1600 as the Greenback plunges, driven by an escalation of the trade war between the US and China. However, gains seem capped by the political turmoil and weaker-than-expected data in the Eurozone (EZ).

The Dow Jones Industrial Average (DJIA) soured sharply on Friday, plummeting to its lowest bids in nearly three weeks and declining over 1,000 points top-to-bottom after US President Donald Trump pulled out of upcoming trade talks with Chinese President Xi Jinping and vowed to sharply increase impor

Gold price rises during the North American session on Friday amid an escalation of the trade war between the US and China. This, the US government shutdown and expectation for further easing by the Federal Reserve (Fed) keep the yellow metal bid.

West Texas Intermediate (WTI) US Crude Oil prices collapsed below $60.00 per barrel on Friday, tumbling over 4% in Oil’s worst single-day performance since June’s sharp pullback.

The Australian Dollar (AUD) slumps against the US Dollar (USD) on Friday, with AUD/USD plunging to over one-month lows after US President Donald Trump threatened a “massive increase” in tariffs on Chinese imports, reigniting fears of a renewed trade war between the world’s two largest economies.

Federal Reserve (Fed) Bank of St. Louis President Alberto Musalem spoke about the United States (US) economy and monetary policy at a fireside chat before the Springfield Area Chamber of Commerce and Public policy speakers, stating that inflation is running high.

The Euro (EUR) extends its pullback against the Japanese Yen (JPY) on Friday, with EUR/JPY losing 0.35% to 176.40 at the time of writing, after reaching an all-time high of 177.94 in the previous session.

United States Baker Hughes US Oil Rig Count came in at 418, below expectations (421)

The US Dollar Index (DXY) drops by 0.48% to trade around 98.90 on Friday at the time of writing, extending its recent weakness as global investors react to a new escalation in trade tensions between the United States (US) and China.

Russia Consumer Price Index (MoM) rose from previous -0.4% to 0.34% in September

The Euro (EUR) is showing signs of stabilization against the US Dollar (USD) on Friday, pausing a four-day losing streak as the Greenback softens. At the time of writing, EUR/USD trades near 1.1621, up around 0.50% on the day, after dipping to a two-month low on Thursday.

GBP/USD retreats toward 1.3280 during Friday’s US session, marking a fresh two-month low. The US Dollar (USD) remains firm, supported by increased safe-haven demand amid political uncertainty in Japan and France.

The EUR/GBP pair advances on Friday but remains shy of the 0.8700 figure after hitting a daily high of 0.8725 earlier during the European session. France's political turmoil and a stagnating economy in the UK could keep the cross-pair trading within familiar levels of 0.8650-0.8750.

Gold (XAU/USD) holds firm on Friday following a sharp pullback the previous day after retesting Wednesday’s all-time high of $4,059. At the time of writing, XAU/USD is hovering around $3,985, as bulls struggle to extend gains beyond the $4,000 psychological mark.

Consumer confidence in the United States (US) deteriorated slightly in early October, with the University of Michigan's Consumer Sentiment Index edging lower to 55 in its preliminary estimate from 55.1 in September. This print came in better than the market expectation of 54.2.

United States UoM 1-year Consumer Inflation Expectations: 4.6% (October) vs previous 4.7%

West Texas Intermediate (WTI) Crude Oil extends its slide for the second consecutive day on Friday, giving up all gains recorded earlier in the week as selling pressure intensified.

United States UoM 5-year Consumer Inflation Expectation remains unchanged at 3.7% in October

United States Michigan Consumer Expectations Index declined to 51.2 in October from previous 51.7

United States Michigan Consumer Sentiment Index above expectations (54.2) in October: Actual (55)

US stocks edge higher at the opening of Wall Street on Friday as investors look ahead to fresh consumer sentiment data and keep a close eye on developments in the Artificial Intelligence (AI) sector.

The Canadian Dollar (CAD) gains traction against the US Dollar (USD) on Friday, snapping a three-day losing streak after upbeat employment figures boosted investor confidence and helped offset recent Greenback strength.

The Unemployment Rate in Canada remained unchanged at 7.1% in September, Statistics Canada reported on Friday. This reading came in better than the market expectation of 7.2%.

Canada Participation Rate: 65.2% (September) vs 65.1%

Canada Unemployment Rate below forecasts (7.2%) in September: Actual (7.1%)

Canada Net Change in Employment registered at 60.4K above expectations (5K) in September

Mexico Industrial Output (YoY) registered at -3.6%, below expectations (-2.2%) in August

The Pound Sterling (GBP) strives to gain ground against the US Dollar (USD) during Friday's European trading session after posting a fresh two-month low around 1.3280 earlier in the day.

The AUD/USD pair edges lower to near 0.6550 during the late European trading session on Friday. The Aussie pair faces a slight selling pressure as the US Dollar holds onto gains driven by recent political developments in Japan and France.