Now that the Fed appears ready to hike rates this summer, markets are watching how the dollar responds.
The greenback, still 3 percent lower on the year, has risen this week against most currencies after Fed officials said in their meeting minutes that they could raise rates as early as June. New York Fed President William Dudley reaffirmed that view Thursday when he said the Fed could hike rates in June or July if economic data improves as expected.
On Friday, existing home sales are expected at 10 a.m. EDT.
"It's going to be what happens overnight with the currencies…The home sales data is important but I feel like after this week, everyone's trying to get their head around what's going on with the Fed," Tom Simons, money market economist at Jefferies, said.
On Thursday, the fed funds futures market was pricing in about a 30 percent chance of a rate hike in June, compared to just 4 percent last week. Simons said a 100 percent chance was priced in for November, while just a week ago, the first full hike was not priced in until the second half of 2017.