The US Dollar’s (USD) sharp H1 2025 drop could push investors toward broader portfolios, though geopolitics and Fed risks may keep the currency unsettled.
The FOMC is expected to deliver a 25bp rate cut with potential dissents, reflecting the tension between inflation risks and weakening employment. Federal Reserve (Fed) Gov.
GBP/USD resumes its uptrend on Friday, trimming some of Thursday’s losses as the US Dollar (USD) recovers some ground. Inflation data in the US kept steady the chances of a Federal Reserve (Fed) cut at the December meeting, weighing on the Greenback.
EUR/GBP remains under pressure on Friday as the Euro (EUR) continues to soften against a broadly supported British Pound (GBP). Sterling has held firm since the UK Autumn Budget, even as markets maintain strong expectations for a Bank of England (BoE) interest rate cut at the December 18 meeting.
The Personal Consumption Expenditures (PCE) Price Index rose 2.8% on a yearly basis in September, the US Bureau of Economic Analysis (BEA) reported on Friday. This print followed the 2.7% increase recorded in August and came in line with the market expectation.
American consumer confidence edged higher in early December, as households grew more optimistic about current conditions and the broader economic outlook, according to preliminary data from the University of Michigan (UoM).
European Central Bank (ECB) and Bank of France Governor Villeroy de Galhau said on Friday that their current "good position" of ECB policy does not mean a comfortable or fixed one at a conference in Paris.
Canada delivered another major jobs surprise with 54k new positions, pushing the jobless rate sharply lower. Markets priced in future hikes as yields spiked, though analysts still expect the Bank of Canada (BoC) to hold steady through 2026, TDS' economists Robert Both and Emma Lawrence note.
The Canadian Dollar (CAD) strengthens against the US Dollar (USD) on Friday as a stronger-than-expected Labour Force Survey boosts sentiment around the Loonie.
The US Dollar (USD) is adding marginally to net losses on the week into Friday trade but the broader tone of price action is perhaps tending towards consolidation in DXY losses, with the index edging back to the 99 area, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
Italy is considering declaring its central bank’s 2,452 tons of Gold as the property of the people, a move opposed by the ECB over fears it could threaten bank independence.
The US Dollar has popped up above the 155.00 line against the Japanese Yen on Friday’s European session, after bouncing up from two-week lows at 154.30 on Thursday.
The TTF Natural Gas price continued to slide this week. The 1-month forward is currently trading below EUR 27 per MWh, which is the lowest level in 20 months, Commerzbank's commodity analyst Carsten Fritsch notes.
Saudi Arabia has reduced its official selling prices for January Oil deliveries, with Asian customers now paying only $0.60 per barrel above the Oman/Dubai benchmark.
The Swiss National Bank (SNB) is expected to maintain its policy rate at 0% despite weak inflation and GDP growth, citing high barriers to negative rates.
Since the beginning of October, the price of a barrel of Brent crude Oil has fluctuated mainly between USD 60 and 65. This is unlikely to change in the coming week, as factors supporting and weighing on prices are likely to balance each other out.
Gold (XAU/USD) edges higher on Friday as the latest US economic data reinforces expectations of a Federal Reserve interest rate cut next week, with steady PCE inflation and easing consumer inflation expectations keeping the policy outlook firmly dovish.
The Reserve Bank of India (RBI) cut its policy rate by 25bps to 5.25%, supporting economic growth amid a benign inflation outlook. USD/INR hovers just below record highs as markets price in a floor for rates, with potential future hikes over the next two years, BBH FX analysts report.
USD/CAD is under pressure near 1.3940 as markets await Canada’s November labor force survey, with modest job losses expected. The Bank of Canada (BOC) is likely done cutting rates, while upcoming USMCA talks remain a potential downside risk for the Canadian economy, BBH FX analysts report.
Gold price (XAU/USD) gains 0.4% to near $4,230 during the European trading session on Friday. The yellow metal trades firmly, but is confided in a tight range between $4,164 and $4,265 for the last four trading days.
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