The Commerce Department was set to publish September inflation figures at 12:30 GMT Friday. Market analysts expect consumer prices to rise 0.6%, while core inflation is forecast to inch up 0.2%.

On a yearly base, core CPI is projected to climb 1.8%. Core prices are viewed by the Federal Reserve as a better gauge of longer-term inflationary pressure because they exclude the volatile food and energy categories. The central bank usually tries to aim for 2% core inflation or less.

Rising inflation would be a catalyst to push the Federal Reserve toward raising interest rates.

The U.S. dollar weakened earlier in the week after the minutes of the Fed's September policy meeting on Wednesday showed that policymakers remain divided on inflation.

Also Friday, the Commerce Department was due to publish data on retail sales for September. The consensus forecast is that the report will show retail sales increased 1.7% last month. Core sales are forecast to gain 0.3%.

Rising retail sales over time correlate with stronger economic growth, while weaker sales signal a declining economy. Consumer spending accounts for as much as 70% of U.S. economic growth.

Bitcoin prices rallied to new record highs of $5,874.30 on Friday, before settling around $5,645 by 09:40 GMT.

The cryptocurrency had traded above the $5,100 threshold for the first time in its 9-year history on Thursday amid reports trading in China could resume, with more regulation.

The new measures could include new licensing and anti-money laundering regulations to be implemented by exchanges. The news came a month after China clamped down on bitcoin-related activity, ordering domestic bitcoin exchanges to cease operations.

Analysts also believed that heavy buying of Bitcoin could be related to the upcoming "fork" that will result in the creation of "Bitcoin Gold". Holders of Bitcoin will automatically receive Bitcoin Gold.

The GBP erased the previous session's sharp losses, climbing to a 2-week high on Friday following reports by German newspaper Handelsblatt that the U.K. could stay in the European Union for another two years.

The newspaper indicated that the EU's offer is tied to the U.K. meeting all of its obligations as a member country, but giving up its voting rights. Sterling had initially dropped after EU chief negotiator Michel Barnier announced on Thursday that Brexit talks were at an "impasse."

Barnier added that the U.K. had told the EU that it wasn't ready to specify how much the nation should pay in exit fees. However, the EU negotiator also said there had been progress in other areas, including citizens' rights, and he hoped there will be positive developments within the next two months.

World shares were mixed on Friday, as markets were digesting a batch of corporate earnings reports and economic data.

Asian-Pacific equities closed mostly higher, with Japan's Nikkei 225 ending the session at a fresh 21-year high. Official data earlier showed that China's imports increased by 18.7% last month, beating expectations, while exports rose less than expected by 8.1%.

Meanwhile, European shares were steady amid lingering concerns over political stability in Spain and after European Central Bank President Mario Draghi defended the need to keep interest rates low.

In a speech on Thursday, Draghi said interest rates would remain at current levels "well past" the time the central bank stops buying assets. He also indicated that the ECB's asset purchases would continue until officials see a sustained improvement in the outlook for inflation.

On Wall Street, U.S. stocks pointed to a steady open, after a string of third-quarter earnings reports on Thursday failed to give markets a solid direction and as traders looked ahead to a fresh batch of corporate results.

Elsewhere, Crude oil prices were higher on Friday, following news of a third consecutive week of declines in U.S. crude stockpiles and fresh signs the market is progressively re-balancing.