The US Dollar (USD) is showing broad strength against nearly all of the G10 currencies as we head into Friday’s NA session, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

Most G10 currencies with the exception of SEK

"Markets are breathing a sigh of relief over Fed Chair Powell’s tenure following President Trump’s Fed visit on Thursday afternoon. The distribution of overnight FX returns offers no clear indication of the market’s broader tone with notable underperformance from AUD and JPY alongside modest losses for GBP, NZD and CAD. MXN and EUR are showing marginal weakness while SEK is the only one of the G10 currencies to be seeing gains vs. the USD."

"Beyond FX, we’re seeing limited movement in equity futures as they consolidate at fresh record highs, while the US 10Y yield climbs back above 4.40% around the midpoint of its range from November. In commodities, we’re seeing a continued stabilization in the price of oil above $65/bbl (WTI) as copper continues to trade erratically in response to tariffs. Gold prices are soft and trading back to their 50 day MA, with a bull trend that looks to have flattened out over the past several months."

"The focus for Friday’s session with center on the release of durable goods data, along with the Kansas City Fed services activity index. There are no Fed speakers as we remain in the communications blackout period ahead of next Wednesday’s decision, where the central bank is broadly expected to leave rates on hold. The risk for next Wednesday will center on the tone of the statement and Fed Chair Powell’s press conference, as well as the distribution of voting with a high risk of a dovish dissent."