US Dollar takes a day off at elevated levels after a steep surge throughout this week

NEW YORK (October 18) The US Dollar (USD) turns flat to a touch softer on Friday with some profit-taking after steep rallies against many major G20 currencies this week. The slight retracement comes on the back of Chinese economic data and more details on the stimulus package the Chinese government is rolling out. With Chinese deposit rates being cut this Friday and more details released on the Chinese stimulus package, it looks like China is propping up its economy further. 

The US calendar is very light in terms of economic data. No real market-moving data points will be issued on Friday, with only Building Permits and Housing Starts on deck. Instead,  look for the Federal Reserve (Fed), where no less than three members are set to speak. 

aily digest market movers: Does anyone still care about the Fed?

• At 12:30 GMT, the US Census Bureau will release housing data for September. Monthly Building Permits are expected to be at 1.46 million, compared to 1.47 million in August, while Housing Starts are expected to decrease to 1.35 million against 1.356 million prior. 
• At 13:30 GMT, Federal Reserve Bank of Atlanta President Raphael Bostic delivers a presentation about economic education to high school students as part of the Mississippi Council on Economic Education Event.
• Around 14:00 GMT, Federal Reserve Bank of Minneapolis President Neel Kashkari moderates a policy panel at the 2024 Macroeconomic Policy Perspectives hosted by the Minneapolis Fed, the University of Chicago, and Stanford University.
• Near 16:10 GMT, Federal Reserve Governor Christopher Waller delivers a speech about decentralized finance at the Nineteenth Annual Vienna Macroeconomics Workshop in Vienna, Austria.
• At 16:30, Fed’s Bostic gives remarks and participates in a moderated conversation at the Mississippi Council on Economic Education's Forum on American Enterprise luncheon, United States.
• Asian equities saw Chinese indices outperform on the extra wave of stimulus measures issued. European equities are trying to grasp European Central Bank President Christine Lagarde’s speech from Thursday on the sluggish European economy. US futures are flat on the day and are yet to choose a direction. 
• The CME Fed rate expectation for the meeting on November 7 shows a 90.2% probability of a 25 bps rate cut, while the remaining 9.8% is pricing in no rate cut. Chances for a 50 bps rate cut have been fully priced out. 
• The US 10-year benchmark rate is trading at 4.11% after having flirted with a break below 4% on Wednesday. 

FXStreet