EUR/USD
EUR/USD is gaining recovery momentum above 1.0850 in the early European session on Friday. The pair stays underpinned by the renewed US Dollar weakness, as risk sentiment rebounds ahead of the key US PCE inflation data.
GBP/USD
GBP/USD is holding mild gains above 1.2850 in early Europe on Friday, helped by a broadly weaker US Dollar amid a risk reset. The Fed-BoE divergent policy outlooks continue to favor the Pound Sterling. Traders look to the US PCE inflation data for fresh directives.
USD/JPY
The USD/JPY trimmed some of its earlier losses and finished Thursday’s session virtually unchanged, trading at 153.93 after hitting a daily low of 151.94. The release of better-than-expected US GDP figures for the second quarter of 2024 sponsored the Greenback’s recovery versus the Japanese Yen.
AUD/USD
The Australian Dollar (AUD) halts its nine-day losing streak against the US Dollar (USD) on Friday, following unexpected cuts to key lending rates by the People’s Bank of China (PBoC). This move enhances the outlook for the major metals consumer, leading to higher prices for commodities such as coal and copper. Given Australia’s role as a net exporter of energy and metals, its currency is notably responsive to changes in commodity prices.
NZD/USD
The NZD/USD pair edges higher during the Asian session on Friday and for now, seems to have snapped a six-day losing streak to its lowest level since early May, around the 0.5880 region touched the previous day. Spot prices, however, struggle to build on the modest intraday strength beyond the 0.5900 round-figure mark as traders keenly await the crucial US inflation data before placing directional bets.
USD/CAD
USD/CAD breaks its winning streak that began on July 17, trading around 1.3810 during the Asian session on Friday. The pair retreated from an eight-month high of 1.3849, a level recorded on Thursday. This downside of the USD/CAD pair is attributed to the weakening of the US Dollar (USD) ahead of the release of the US Personal Consumption Expenditures (PCE) Price Index for June.
USD/CHF
The USD/CHF pair remains under selling pressure around 0.8810 during the early European session on Friday. The Greenback edges lower despite stronger-than-expected US economy data on Thursday. The tech-led global stock market sell-off has fueled a flight to safety, benefiting the safe-haven currencies like the Swiss Franc (CHF).
CRUDE OIL
Oil prices rose slightly on Friday but remained on track for a third straight week of decline due to weak demand in China, the world’s largest crude importer, and expectations of a ceasefire deal for the Gaza war and related violence in the Middle East.
Gold price has managed to defend the key support near $2,360, consolidating weekly losses in Friday’s Asian session. Traders now shift their focus toward the monthly release of the US PCE Price Index after Thursday’s second-quarter GDP.
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