"On the opposite case though, a miss on one or both reports will disappoint the dollar bulls. and further dumping of the US currency should be expected", he said, also referring to Friday's consumer sentiment report due at 10 a.m.
The US consumer price index rose only 0.5% last month, due mostly to a temporary spike in gas prices after Hurricane Harvey.
The Fed has indicated it plans to raise interest rates in December.
Scott Clemons, chief investment strategist for Brown Brothers Harriman in NY said that "after a long stretch of consecutive highs in the market, with earnings, even if they are slightly disappointing" that is an excuse to sell off.
After two days of hitting records, the USA benchmark S&P index took a breather as investors were less than impressed with quarterly reports from two major banks, JPMorgan and Citigroup.
The yield on the benchmark 10-year Treasury hovered around 2.32 percent, the super-long 30-year bond yields range-bound at 2.85 percent and the yield on short-term 2-year note also traded flat at 1.52 percent by 10:50GMT.
MSCI's gauge of stock markets across the globe gained 0.06 percent, buoyed gains in Asian markets.
The Dow Jones Industrial Average fell 7.32 points, or 0.03 percent, to 22,865.57, the S&P 500 lost 1.8 points, or 0.07 percent, to 2,553.44 and the Nasdaq Composite added 0.69 points, or 0.01 percent, to 6,604.24.
The ICE Dollar Index was on course to fall 0.7% for the week, the first weekly decline in five weeks. Eastern Time. Economists polled by MarketWatch forecast consumer prices to have risen 0.6% in September, compared with 0.4% in August, with core CPI to come in at 0.2%.
The Mexican peso lost 0.30 percent versus the USA dollar at 18.76 amid concerns the North American Free Trade Agreement (NAFTA) talks could run aground.
The euro touched its highest in more than two weeks at $1.1880 on Thursday and was trading a shade below that level at $1.1827 on Friday.
Sterling: The pound GBPUSD, +0.3544% traded at $1.3296, compared with $1.3262 late Thursday in NY.
Japan's Nikkei rose 0.4 percent, hitting its highest since late 1996.
USA crude fell 1.72 percent to $50.42 per barrel and Brent was last at $56.00, down 1.65 percent on the day.