EUR/USD
EUR/USD is consolidating its recovery below 1.0300 in the European morning on Friday. The pair breathes a sigh of relief as the US Dollar rally stalls even as markets stay cautious amid geopolitical risks and Trump’s tariff plans. The focus remains on US ISM PMI data and central bank talks.
GBP/USD
GBP/USD rebounds to test 1.2400 in the European session on Friday. A minor pullback in the US Dollar allows the pair to find some respite after having lost over 1% on the outset of the New Year on Thursday. All eyes remain on the US ISM PMI data and Fedspeak for further impetus.
USD/JPY
The USD/JPY pair edges lower to near 157.30 during the Asian trading hours on Friday. The verbal intervention from the Japanese authorities provides some support to the Japanese Yen (JPY). However, the uncertainty surrounding the Bank of Japan’s (BoJ) policy outlook might cap the JPY’s upside. Markets in Japan are closed for the rest of the week. Traders brace for the US ISM Manufacturing PMI for December, which is due later on Friday.
AUD/USD
The Australian Dollar (AUD) extends its gains for the second successive session against the US Dollar (USD) on Friday. The AUD gained support following a Financial Times report stating that the People’s Bank of China (PBoC) expects an interest rate cut this year at an appropriate time. As close trade partners, any fluctuations in China’s economy tend to impact Australian markets.
NZD/USD
The NZD/USD pair recovers some lost ground to around 0.5605 during the early European session on Friday. The prospect that the People’s Bank of China (PBoC) will likely cut its main rate this year provides some support to the China-proxy New Zealand Dollar (NZD).
USD/CAD
The USD/CAD pair softens to near 1.4395 on Friday during the Asian trading hours. The rise in crude oil prices provides some support to the commodity-linked Canadian Dollar (CAD) against the Greenback.
USD/CHF
The USD/CHF pair weakens to near 0.9110, snapping the four-day winning streak during the early European session on Friday. The safe-haven flows demand amid the persistent geopolitical tensions in the Middle East and the ongoing Russia-Ukraine conflict boosts the Swiss Franc (CHF) against the Greenback.
CRUDE OIL
Oil prices extended gains on Friday after closing at their highest in more than two months in the prior session, amid hopes that governments around the world may increase policy support to revive economic growth that would lift fuel demand.
Gold price consolidates a two-day upsurge above $2,650 early Friday. The US Dollar stalls its uptrend amid sluggish US Treasury bond yields and a cautious mood. Gold price cheers geopolitical woes and a bullish daily RSI as buyers scale all key technical hurdles.
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