Greenback Gives Back Stimulus Inspired Gains

After a firm start to the session, the USD was sold into the NY close as markets look ahead to an event from the Biden-Harris transition team, at which the President-Elect is expected to outline his economic plan for when he enters office. Reports of a stimulus package that could amount to as much as $2trl helped boost the USD initially, but selling pressure knocked the greenback as stocks advanced.

Elsewhere, the single currency traded poorly, with the EUR slipping as Italian politics begins to take focus. Following the withdrawal of Matteo Renzi's ministers from the governing coalition, Italian PM Conte faces a stark set of choices to continue governing, including a snap general election.

UK industrial and manufacturing production, US PPI and retail sales data as well as the prelim Uni. of Michigan sentiment release are the highlights Friday. A number of ECB speakers are due, with Stournaras, Visco, Makhlouf among those due.