EUR/CHF is trading sideways on Friday, hovering near 0.9332 after a choppy week marked by the Swiss National Bank’s (SNB) monetary policy announcement.
The Pound Sterling (GBP) is trading flat against the US Dollar (USD) and outperforming all of the G10 currencies on the crosses, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
The Euro (EUR) is attempting to stabilize in the mid/upper-1.16s following US data-driven losses on Wednesday and Thursday, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
Gold (XAU/USD) extends gains on Friday, pushing past the recent $3,760-$3,720 range, as the US Dollar (USD) eases after the latest Personal Consumption Expenditures (PCE) inflation report showed no fresh upside surprises.
Australian Dollar (AUD) could test the major support at 0.6500; a sustained drop below this level appears unlikely. In the longer run, the price action continues to suggest AUD weakness, likely toward 0.6500, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
There weren’t see evidence that the dollar rebound was driven by geopolitics, and it appeared more like US Dollar (USD) bears were setting a higher bar to justify the expensive dollar selling.
Pound Sterling (GBP) could decline further, but it might not reach 1.3260 today. In the longer run, GBP is expected to continue to decline; the next level to watch is 1.3260, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
The yen has been one of the biggest losers this week due to its sensitivity to any hawkish repricing in the US Dollar (USD) curve, ING's FX analyst Francesco Pesole notes.
The third estimate of US growth is usually not met with quite as much excitement in the market. This estimate covers a period that is already in the past, and two previous estimates have already provided an indication of growth.
The British Pound is trimming Thursday’s losses on Friday, favoured by generalised Japanese Yen weakness, following relatively soft inflation figures in the Tokyo area.
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is holding losses after two days of gains and trading around 98.40 during the Asian hours on Friday.
Ken Griffin expects one, but possibly two, more Fed cuts in 2025 as policymakers shift focus to a cooling labor market. He cited rising unemployment and slower job creation as concerns, while also stressing the importance of Fed independence.
The GBP/USD ended Thursday’s session with losses of over 0.78%, seeming poised to test lower prices as a scarce economic docket in the UK would leave traders adrift to dynamics linked to the US Dollar.
EUR/USD tumbled sharply below 1.1700 on Thursday, extending its losses below two technical support levels, which opens the door for further downside. Strong jobs market data from the United States (US) pushed the Euro lower. At the time of writing, the pair trades at 1.1667 down 0.60%.
The Fed prefers PCE as its inflation gauge because it adjusts weights more frequently and better reflects consumer behavior, but markets still trade mainly off CPI due to its earlier release and entrenched habit.
Gold price trimmed earlier gains after reaching a daily high of $3,761 on Thursday, following the release of a US jobs report that showed signs of strength, contrary to the main reason for cutting rates last week. Also, traders are eyeing the release of inflation data on Friday.
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