EUR/USD
EUR/USD trades marginally higher above 1.0400 in the second half of the day on Friday. The absence of fundamental drivers and thin trading conditions on the holiday-shortened week make it difficult for the pair to gather directional momentum.
GBP/USD
GBP/USD regains its traction and trades in positive territory near 1.2550 after declining toward 1.2500 earlier in the day. Nevertheless, the cautious market mood limits the pair’s upside as trading volumes remain low following the Christmas break.
USD/JPY
The Japanese Yen (JPY) gains ground against the US Dollar (USD) on Friday. The USD/JPY pair pulls back from its recent gains as the Japanese Yen (JPY) strengthens following the release of Tokyo Consumer Price Index (CPI) inflation data. The data is expected to keep the Bank of Japan (BoJ) on track for an interest rate hike in January.
AUD/USD
The AUD/USD pair trades in a very tight range near the yearly support of 0.6200 in Friday’s North American session. The Aussie pair struggles for direction as the price action is broadly muted in global markets amid thin trading volume, given that traders are busy welcoming the New Year.
NZD/USD
The NZD/USD pair extends its downside to around 0.5615 during the early Asian session on Friday. The New Zealand Dollar (NZD) weakens amid concerns about weak consumer demand and a prolonged downturn in the property market in China. The markets are likely to trade in a quiet session ahead of the New Year holiday.
USD/CAD
The USD/CAD pair trades in a tight range around 1.4400 in Friday’s European session. The Loonie pair consolidates as trading activity has muted in a holiday-curtailed week. The US Dollar (USD) trades sideways, but its outlook remains broadly firm on expectations that the Federal Reserve (Fed) will take a slower path of interest rate cuts compared with other central banks.
USD/CHF
USD/CHF recovers its recent losses from the last two sessions amid thin trading activity following the Christmas holiday, trading around 0.9000 during the European hours on Friday. This upside of the USD/CHF pair could be attributed to a stronger US Dollar (USD), driven by growing expectations of fewer rate cuts by the US Federal Reserve (Fed).
CRUDE OIL
U.S. crude oil and fuel stockpiles are expected to have fallen last week, an extended Reuters poll showed on Tuesday.
Gold enters a consolidation phase and trades below $2,630 on Friday after posting modest gains on Thursday. The risk-averse market atmosphere helps XAU/USD limit its losses as investors refrain from taking large positions heading into the end of the holiday-shortened week.
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