A sense of calm prevailed in the market, with most majors extending their recovery mode amid fresh US dollar weakness across the board. The Asian traders continue to weigh in the dovish Fed Chair Powell’s testimony and shrugged off upbeat US inflation data.

USD/JPY enjoyed good two-way businesses so far this Friday. The spot extended the overnight recovery near 108.60 region before receding sharply to test the key support of 108.31. Meanwhile, both the EUR/USD and GBP/USD traded firmer amid a broadly weaker US dollar and ahead of the Eurozone Industrial Production data release.

Markets gear up for a busy EUR docket to wrap an eventful week, with the Eurozone Industrial Production data reporting at 09:00 GMT, that is likely to have a significant impact on the shared currency, as the European Central Bank looks to ease monetary policy sooner. The UK docket remains data empty and therefore, the UK political dram will continue to influence the GBP price-action.

The NA session offers the only relevant data in the US Producer Price Index (PPI) data, due at 12:30 GMT. The speech by the Fed official Evans will also grab some attention ahead of the US Baker Hughes Oil Rig Count data due on the cards at 17:00 GMT.

Oil remains on the bids near 7-week tops as it trades at $60.50 in the Europe market’s open on Friday. Adding to the momentum could be the likely UK-Iran tension after the British oil tanker was stopped by Iranian guards in the Persian Gulf. On the background, supply cut extension by OPEC, Russia and some other non-OPEC oil producers, jointly called as OPEC+, continue to flash output crunch worries.

Gold pulls back amid trade jitters, and easy money concerns triggered risk-on sentiment taking buyers off the yellow metal.