Greenback Extends Strength, ECB Flags Dec Policy Tweak

The ECB rate decision was seen by markets as a placeholder for December's likely more critical meeting. Lagarde and the executive board stopped just short of pre-announcing another stimulus package before the end of the year, with the governing council seen waiting for an update to economic projections and further national fiscal aid before composing such a 'recalibration' of policy. This prompted EUR to lag, and USD to outperform into the Thursday close.

Greenback strength may have also carried an element of pre-setting ahead of October month-end Friday. Equity underperformance this week has prompted the bulk of month-end models to signal USD demand into the Friday close.

Preliminary GDP data from France, Germany, the Eurozone and Canada take focus Friday and are expected to echo the pattern seen in Thursday's US GDP release - showing a firm, but insufficient bounceback from the lockdown-induced slumps suffered in Q2. October MNI Chicago PMI data also crosses. ECB's Mersch, de Guindos & Weidmann speak post-rate decision.