EUR/USD
EUR/USD is consolidating the latest uptick but stays below 1.1000 early Friday. The pair benefits from a renewed US Dollar weakness, induced by the dovish Fed expectations. Escalating geopolitical tensions cap the pair’s upside. US data next in focus.
GBP/USD
GBP/USD trades in a tight channel above 1.2750 on Friday. The data from the UK showed that monthly real GDP expanded by 0.3% in November, while Industrial Production contracted by 0.1% on a yearly basis. Market focus shifts to US PPI data.
USD/JPY
The USD/JPY climbed early in Thursday’s US market session after US Consumer Price Index (CPI) inflation numbers broadly beat market forecasts, with inflation stepping higher in December and completely swamping out market hopes for signs that rate cuts would be impending soon.
AUD/USD
The AUD/USD pair remains on the defensive during the early Asian session on Friday. The pair edges lower on the stronger-than-expected December US inflation figures. Investors await China’s inflation and Trade Data on Friday for fresh impetus. AUD/USD currently trades around 0.6688, up 0.03% on the day.
NZD/USD
NZD/USD moves higher on an upward trajectory for the second consecutive session on Friday, improving near 0.6250 during the Asian session. The NZD/USD pair receives upward support on improved risk appetite as traders bet on speculation of Federal Reserve’s (Fed) rate cuts in March and May despite upbeat inflation data from the United States (US). Additionally, the moderate Chinese inflation data seems to reinforce the strength of the New Zealand Dollar (NZD), given the close trade ties between the two nations.
USD/CAD
USD/CAD retraces its recent gains registered in the previous session, edging lower to near 1.3380 during the Asian session on Friday. The Canadian Dollar (CAD) has strengthened in response to the increase in crude oil prices, which can be linked to the heightened tensions in the Middle East.
USD/CHF
The USD/CHF pair remains confined within a multi-week trading range of 0.8400-0.8575 during the early European trading hours on Friday. The firmer US Dollar (USD) following the upbeat US inflation data might lend some support to the pair. However, the upside of USD/CHF might be limited due to the escalating tension in the Middle East. At press time, the pair is trading at 0.8520, losing 0.02% on the day.
CRUDE OIL
Oil prices rose 2% on Friday as the United States and Britain carried out air and sea strikes on Houthi military targets in Yemen in response to attacks by the Iran-backed group on shipping in the Red Sea.
GOLD
Oil prices rose 2% on Friday as the United States and Britain carried out air and sea strikes on Houthi military targets in Yemen in response to attacks by the Iran-backed group on shipping in the Red Sea.
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