The US is close to a trade deal with the EU after reaching an agreement with Japan. S&P Global PMIs are in focus ahead of the FOMC decision next week. The ECB is expected to keep rates steady, with Lagarde’s signals crucial for the euro. The S&P 500 hit a new high, but earnings reports were mixed. Risk appetite improved as EU and US trade deal hopes boosted markets. Dollar weakened against risk-linked currencies, but Fed fund futures still point to possible rate cuts. ECB to announce rate decision, Lagarde’s message key for investors. Yen rebounds as Japan PM denies resignation rumors, boosting rate hike chances.

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