The US dollar fell against a basket of currencies on Friday, to resume losses after it took a breather yesterday within recovery attempts from a 7-week low, to head today for the largest weekly loss since July, as demand slowed due to the progress made in the ongoing political talks about the US second fiscal stimulus package, ahead of the release of key US data, which provide insight about the US economic recovery pace during the fourth quarter.

The dollar index fell 0.3% to 92.68 points, after opening at 92.92 points, and hit an intraday high of 93.12 points.

The greenback gained 0.3% yesterday, posting its first daily gain in 5 days, within recovery attempts from a 7-week low of 92.47 points.

The US dollar has lost more than 1.1% so far this week, to head for the third weekly loss in a month, and the largest loss since mid-July.

The biggest weekly loss in 3 months came due to strong market sentiment, as investors focused on other high-risk currencies, amid hopes the US Congress will pass the new Covid-19 aid package, ahead of the presidential election in November.

US House of Representatives Speaker Nancy Pelosi stated that progress she and Treasury Secretary Steven Mnuchin were "just about there" on reaching the second Covid-19 stimulus deal.

This raised hopes about passing the second fiscal stimulus package in the US Congress before the next presidential elections in November.

Investors are waiting for the release of the US manufacturing PMI reading at 12:30 GMT, with forecast to rise to 53.5 points in October vs. 53.2 points in September, and the service PMI reading is expected to rise to 54.7 points in October vs. 54.6 in September.

Oil prices continued to rise as the US market opened on Friday, to extend gains for the second straight day, after the Russian President Vladimir Putin's statements about extending the production cuts if needed.

US crude rose 0.75% to $40.89 a barrel, after opening at $40.59, and hit an intraday low of $40.35, and Brent rose 1.0% to $42.78, after opening at $42.36, and hit a low of $42.20. 

The US crude rose 1.7% yesterday, and rebounded from a 1-week low of $39.74, and Brent futures rose 1.7%, and Brent crude futures rose by 1.7%, and recovered from the lowest since Oct 12 at $41.48.

Russian President Vladimir Putin said on Thursday that there is no need to change anything in the global supply cut agreement, but extending the cuts can be taken if needed.

These statements from one of the world's largest oil producers boosted odds of an extension in the record global output cuts to meet the expected decline in demand due to the second wave of the coronavirus.

The global OPEC-Plus coalition is currently implementing the second phase of the cut agreement, cutting about 7.7 million bpd until the end of December, and will be lowered to 5.7 million bpd in phase three, starting from January 2021 until April 2022.

The collation pledged after the Joint Ministerial Monitoring Committee meeting  this week to continue supporting the market in order to restore balance in prices amid the mounting worries about the coronavirus rising infections.

Reuters cited sources that the next output increase scheduled for January could delayed if necessary, which raised odds of extending the second phase of the agreement.

Silver prices rose on Friday, to resume gains after pausing yesterday, and head for a weekly gain, as the US dollar fell against its peers.

Silver prices rose 0.6% to $24.84, after opening at $24.70, and hit a low of $24.49.

Silver closed lower by 1.3% yesterday, posting the first daily loss in 4 days, on profit-taking from 1-week high of $25.28.

Silver prices have gained around 3% so far during this week, to head for the third weekly gain in a month, as the US dollar fell broadly this week.

The dollar index fell 0.2% today, to resume losses after it took a breather yesterday, dropping near its 7-week low of 92.47 points against a basket of major currencies.

The greenback fell due to strong market sentiment, as investors focused on other high-risk currencies, amid hopes the US Congress will pass the new Covid-19 aid package, ahead of the presidential election in November.

European stocks rose on Friday, to rebound from the 4-week low that was hit yesterday, on the cusp of the first gain in 5 days, thanks to improved risk appetite and hopes about the US fiscal stimulus.

The Stoxx Europe 600 index rose over 1.2% as of 10:45 GMT, after it closed lower by 0.1% yesterday and posted the lowest level since September 25 at 356.43 points.

The pan European index opened higher today, to rebound from the 4-week low that was hit yesterday, on the cusp of the first gain in 5 days, with most of the major European markets and sectors seeing green today.

The banking sector saw the largest gains in Europe today, rising over 3%, after better-than-expected Q3 earning reports by some major banks.

US House of Representatives Speaker Nancy Pelosi stated that progress she and Treasury Secretary Steven Mnuchin were "just about there" on reaching the second Covid-19 stimulus deal.

This raised hopes about passing the second fiscal stimulus package in the US Congress before the next presidential elections in November.

The British government and the European Union intensified their daily negotiations on Thursday in order to secure a post-Brexit trade agreement in early January.

S&P 500 futures rose over 0.25%, after the index closed higher by 0.5% yesterday at Wall Street, on improved market sentiment.

Back to Europe, the Euro Stoxx 50 index added 1.3%, France's CAC 40 rose 1.6%, Germany's DAX added 1.25%, and the UK's FTSE 100 rose 1.7%.