EUR/USD
EUR/USD stays defensive below1.1050 in the European morning on Friday. The pair lacks a clear directional impetus, as traders refrain from placing fresh bets ahead of the key US Nonfarm Payrolls data. The focus remains on ECB-speak as well.
GBP/USD
GBP/USD has recovered ground to near 1.3150 heading into the European opening bells on Friday. The further upside, however, appears elusive, as traders brace for the highly-anticipated US Nonfarm Payrolls data for fresh cues on the Fed interest rate outlook.
USD/JPY
The Japanese Yen (JPY) retraces recent gains following comments from Japan’s ministers on Friday. Japan’s Prime Minister (PM) Shigeru Ishiba stated that overcoming deflation is the top economic priority, with economic growth serving as the foundation for fiscal stability. Ishiba pledged to swiftly compile an economic package aimed at easing the impact of rising costs on households. He also emphasized the importance of strengthening ties with like-minded nations to complement Japan’s alliance with the United States (US), while pursuing a regional security policy that balances diplomacy with military strength.
AUD/USD
The Australian Dollar (AUD) gains ground due to the hawkish outlook surrounding the Reserve Bank of Australia (RBA). Recent data showed retail sales growth for August exceeding expectations, reducing the chances of an early rate cut from the RBA. Markets have nearly ruled out a rate cut in November. Furthermore, the AUD is benefiting from stimulus measures in China, Australia’s largest trading partner, which have lifted commodity prices.
NZD/USD
The NZD/USD pair edges higher to around 0.6215 on Friday during the early Asian trading hours. The cautious mood ahead of the key US employment data on Friday and the growing bets of the Reserve Bank of New Zealand (RBNZ) rate cut next week might cap the pair’s upside.
USD/CAD
The USD/CAD pair struggles to capitalize on the previous day’s strong move up to a one-and-half-week top and oscillates in a range around mid-1.3500s during the Asian session on Friday. The downside, however, remains cushioned in the wake of the near-term bullish sentiment surrounding the US Dollar (USD) and ahead of the release of the crucial US monthly employment details.
USD/CHF
USD/CHF breaks its four-day winning streak, trading around 0.8510 during Friday’s Asian session. The Swiss Franc (CHF) receives support from the safe-haven flows amid rising Middle-East tensions. US President Joe Biden mentioned that the United States is in talks with Israel regarding potential strikes on Iran’s Oil infrastructure.
CRUDE OIL
Oil prices were little changed on Friday, but remained on track for strong weekly gains, as investors weighed the prospect of a wider Middle East conflict disrupting crude flows against an amply supplied global market.
GOLD
Gold price extends a side trend below the key $2,670 resistance amid the Israel-Iran conflict. The US Dollar eases off six-week highs, as traders reposition ahead of the Nonfarm Payrolls data.
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