EUR/USD
EUR/USD is trading on the defensive below 1.0600 in the European morning on Friday. The pair is undermined by simmering geopolitical tensions, which boost the safe-haven US Dollar. The downside, however, remains capped on retreating US bond yields.
GBP/USD
GBP/USD is losing further ground, closing in on 1.2100 after the UK Retail Sales data disappointed with -0.9% MoM in September. Escalating Middle East tensions continue to lend support to the US Dollar, weighing on the pair.
USD/JPY
The USD/JPY pair ticks higher during the Asian session on Friday and reverses a part of the previous day’s modest retracement slide from the vicinity of the 150.00 psychological mark or over a two-week high. Spot prices currently trade around the 149.80-149.85 region, though lack any meaningful buying.
AUD/USD
The AUD/USD pair extends its downside below the mid-0.6300s during the early Asian session on Friday. The pair retreats from 0.6340 as markets turn cautious. AUD/USD currently trades around 0.6327, losing 0.02% on the day.
Fed Chair Jerome Powell signaled a desire to pause rate hikes and watch how economic data develops in the coming months. Powell further stated that more monetary policy tightening might be appropriate if there are more indications about above-trend growth or if the labor market stops easing. His comments dragged the USD lower broadly and acts as a tailwind for the AUD/USD pair.
NZD/USD
The NZD/USD slipped into a fresh low for 2023, declining into 0.5815 in Thursday trading before catching a soft bid back into 0.5840, but bearish pressure remains elevated for the beleaguered Kiwi (NZD). Federal Reserve Chairman Jerome Powell hit markets with dovish comments while giving a speech at the Economic Club of New York, where the Fed head spread his bets, noting that rising yields are helping to alleviate some of the upside pressure on rates, but that inflation concerns remain elevated and the Fed seeing rate cuts on schedule is not a foregone conclusion.
USD/CAD
The USD/CAD pair trades with a mild positive bias for the fourth successive day on Friday and is currently placed around the 1.3720-1.3725 region, just a few pips below a two-week high touched the previous day. The softer Canadian consumer inflation figures released on Tuesday forced investors to trim bets for another rate hike by the Bank of Canada (BoC), which, in turn, is seen as a key factor behind the Canadian Dollar’s (CAD) relative underperformance. This, along with the emergence of some US Dollar (USD) buying, acts as a tailwind for the USD/CAD pair, though bullish Crude Oil prices underpin the commodity-linked Lonie and keep a lid on any further gains.
USD/CHF
The USD/CHF pair snaps a two-day losing streak during the early European session on Friday. The pair currently trades near 0.8927, up 0.15% on the day. Meanwhile, the escalating geopolitical tension between Israel and Hamas might benefit to the safe-haven currency like Swiss Franc (CHF).
CRUDE OIL
The USD/CHF pair snaps a two-day losing streak during the early European session on Friday. The pair currently trades near 0.8927, up 0.15% on the day. Meanwhile, the escalating geopolitical tension between Israel and Hamas might benefit to the safe-haven currency like Swiss Franc (CHF).
GOLD
Gold price (XAU/USD) advances to a near three-month top on Friday and remains well supported by the global flight to safety, bolstered by concerns over geopolitical tensions in the Middle East.
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