EUR/USD
EUR/USD remains on the defensive below 1.0950 in the early European session on Friday. The hotter-than-expected US CPI inflation reading on Thursday provided some support to the Greenback, capping the pair’s upside. US PPI inflation data is next in focus.
GBP/USD
GBP/USD draws support from subdued USD demand, though bulls remain on the sidelines. Expectations for more aggressive BoE policy easing undermine the GBP and cap the major. Traders now look to the UK data dump for short-term impetus ahead of the US PPI report.
USD/JPY
The Japanese Yen (JPY) ticks lower during the Asian session on Friday and for now, seems to have stalled the previous day’s modest bounce against its American counterpart from the lowest level since early August. Investors have been scaling back their bets for additional interest rate hikes by the Bank of Japan (BoJ) in 2024 after Japanese Prime Minister Shigeru Ishiba’s comments, saying that the country is not in an environment for more rate increases. This, along with a positive risk tone, undermines the safe-haven JPY ahead of Japan’s snap election on October 27 and offers some support to the USD/JPY pair.
AUD/USD
The Australian Dollar (AUD) gains ground on Friday. Nonetheless, the lower odds of aggressive interest rate cuts from the US Federal Reserve (Fed) after the hotter-than-expected inflation data might lift the US Dollar (USD) and cap the upside for the pair.
NZD/USD
The NZD/USD pair holds positive ground around 0.6095 during the early Asian session on Friday. However, the upside of the pair might be limited as firmer US September inflation lowers the odds of aggressive US Federal Reserve (Fed) cuts, which lift the Greenback. Investors await the Producer Price Index (PPI) and the preliminary Michigan Consumer Sentiment Index data, which are due later on Friday.
USD/CAD
The USD/CAD pair extends the rally to around 1.3745 during the early Asian session on Friday. The hotter-than-expected US inflation data and hawkish comments by Federal Reserve (Fed) officials provide some support to the Greenback ahead of the US September Producer Price Index (PPI) and Canadian job data.
USD/CHF
The USD/CHF pair trades on a stronger note to around 0.8575 during the early European session on Friday. The firmer US Dollar (USD) amid diminishing odds for more aggressive rate cuts by the Federal Reserve (Fed) underpins the pair.
CRUDE OIL
Oil eased on Friday after a rally the previous day, but prices remained set for a second straight weekly gain as investors weighed the impact of hurricane damage on U.S. demand against any broad supply disruption if Israel attacks Iranian oil sites.
GOLD
Gold price is seen building on the previous day’s goodish bounce from the $2,600 neighborhood, or a nearly three-week low and gaining positive traction for the second successive day on Friday. The momentum is sponsored by expectations that the Federal Reserve will continue cutting rates amid signs of labor market weakness.
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