EUR/USD
EUR/USD continues to trade in a narrow channel at around 1.0400 in the European session on Friday. The data from Germany showed that Retail Sales unexpectedly declined in December, making it difficult for the Euro to gain traction.
GBP/USD
GBP/USD continues its losing streak for the fourth successive session, trading around 1.2420 during the Asian hours on Friday. This downside is attributed to the improved US Dollar amid increased risk aversion following renewed tariff threats from US President Donald Trump.
USD/JPY
The Japanese Yen (JPY) attracts some intraday sellers and snaps a two-day winning streak against its American counterpart after Bank of Japan (BoJ) Governor Kazuo Ueda said this Friday that the underlying inflation is still somewhat below 2%. Apart from this, a modest bounce in the US Treasury bond yields and a generally positive risk tone undermines the safe-haven JPY. This, in turn, assists the USD/JPY pair in rebinding nearly 100 pips from the Asian session low.
AUD/USD
The AUD/USD pair stands neutral around 0.6235 on Thursday, struggling to gain traction ahead of the US Q4 GDP data release. The Federal Reserve opted to keep interest rates steady but maintained a cautious tone, expressing concerns over stalled disinflation progress. Meanwhile, the Reserve Bank of Australia (RBA) is widely expected to shift toward a policy-easing stance in the coming month, further weighing on the Aussie.
NZD/USD
The NZD/USD pair attracts some buyers during the Asian session on Friday and for now, seems to have snapped a three-day losing streak to over a one-week low, around the 0.5620 area touched the previous day. Spot prices currently trade around the 0.5640-0.5645 region, though the upside seems limited.
USD/CAD
The USD/CAD pair finds some support near the 1.4470 region during the Asian session on Friday and for now, seems to have stalled the previous day’s pullback from its highest level since March 2020. Spot prices currently trade just below the 1.4500 psychological mark and remain on track to register strong weekly gains.
USD/CHF
The USD/CHF pair trades with mild gains to near 0.9100 during the early European session on Friday. The hawkish hold from the US Federal Reserve (Fed) provides some support to the US Dollar (USD). Investors will take more cues from the US December Personal Consumption Expenditures (PCE) inflation data, which is due later on Friday. Also, Fed Governor Michelle Bowman is set to speak.
CRUDE OIL
Oil prices rose on Friday as markets weighed the threat of tariffs by U.S. President Donald Trump on Mexico and Canada, the two largest crude exporters to the U.S., that could take effect this weekend.
Gold price enters a bullish consolidation phase after touching a fresh all-time peak on Friday. Rebounding US bond yields underpin the USD and cap the upside for the XAU/USD pair. Traders now look forward to the release of the US PCE Price Index for a fresh impetus.
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