Dollar continues lower, stocks steady on Friday

US equity markets staged an impressive rally yesterday, with the Nasdaq 100 and SP500 indices rising above the recent downtrend lines, canceling the immediate bearish threat. 
 
Later in the session, the New York Empire State Manufacturing Index for October will be released, and it is forecast to decrease notably, from 34.3 to 27. 
 
However, investors will focus more on the US retail sales for September. Market participants expect a notable slowdown in retail sales to -0.2% from 0.7% previously, while the ex-autos gauge is seen sliding to 0.5% from 1.8% in August. Weaker numbers could undermine the USD further, but stocks and precious metals might be lifted higher.
 
Lastly, the Michigan consumer confidence sentiment index is due, likely increasing to 73.1 from 72.8. However, rising prices and the recent stumble in the stock markets could lead to a negative surprise. 
 
Meanwhile, Brian Moynihan, CEO at Bank of America Corp., joined finance industry peers, including Goldman Sachs’s John Waldron and Morgan Stanley CEO James Gorman, in predicting that inflationary pressures are likely to persist. 
 
“Inflation is clearly not temporary. The Fed is starting to indicate that it is time for them to move as the path out of COVID-19 is more assured,” Moynihan told Bloomberg.
 
It looks like everybody knows it, but the Fed, awakening precious metals bulls this week as both silver and gold are up firmly, canceling their short-term bearish trends.