New Zealand Dolla (NZD) is likely to decline further but is unlikely to reach the major support at 0.5690 today (there is another support level at 0.5720).
The Euro (EUR) is up a marginal 0.1% against the US Dollar (USD) but still outperforming most of the G10 currencies into Friday’s NA open, attempting some stabilization following a period of significant underperformance against the USD with a near-1.5% decline over the past week or so, Scotiabank's
Further Australian Dollar (AUD) weakness seems likely; oversold conditions suggest any decline may not reach 0.6520 today. In the longer run, AUD is expected to continue to decline, likely toward the late-September low, near 0.6520, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Oversold weakness has not stabilised; Euro (EUR) could drop below 1.1540. The next support at 1.1490 is unlikely to come into view. In the longer run, the outlook for EUR remains negative; it could decline further toward 1.1490, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
USD/CAD remains under upward pressure after breaking above its 200-day moving average at 1.3976. Investors now turn to Canada’s September labor force survey, with expectations for minimal job gains following steep losses in July and August.
Market attention turns to Canadian jobs data, with the unemployment rate expected to tick up to 7.2%. A weaker-than-expected report could reignite speculation of an earlier rate cut in October, adding pressure on the Loonie.
USD/CAD has broken out of its multi-month consolidation, advancing above the 200-day moving average as bullish momentum strengthens. The daily MACD remains firmly in positive territory, suggesting scope for further gains toward 1.4110–1.4165.
It’s becoming increasingly clear that this week’s US Dollar (USD) rally is turning into a broader rethink of the consensus short-dollar trade of the past few months, ING's FX analyst Francesco Pesole notes.
The only tepid and very short-lived EUR relief to Wednesday’s French political news is understandable. Despite the OAT-Bund 10Y spread falling back to the low 80s (bp), the more forward-looking FX market is seeing limited room for optimism, ING's FX analyst Francesco Pesole notes.
The Japanese Yen (JPY) came under pressure in yesterday's trading after it became clear that coalition talks in Japan are proving more difficult than expected. At present, it even looks as though the election of Sanae Takaichi as the new prime minister may have to be postponed.
EUR/JPY loses ground for the second successive session, trading around 176.70 during the European hours on Friday. The technical analysis of the daily chart indicates that short-term price momentum is stronger as the currency cross remains above the nine-day Exponential Moving Average (EMA).
The precious metal complex came under a wave of profit taking yesterday. There was no fundamental catalyst for the move and nothing has changed. What's next?
Silver price (XAG/USD) jumps to near $49.95 during the early European session on Friday. The white metal attracts some buyers amid the ongoing US government shutdown, uncertainty and the prospect of a US interest rate cut.
USD/CAD continues to gain ground for the fourth successive day, trading around 1.4030 during the early European hours on Friday. The technical analysis of the daily chart indicates a prevailing bullish bias as the pair is moving upwards within the ascending channel pattern.
West Texas Intermediate (WTI) US Crude Oil prices extend the previous day's pullback from the vicinity of mid-$62.00s, or the weekly top, and remain depressed for the second straight day on Friday.
ANZ expects one more RBNZ rate cut in November, taking the OCR to 2.25%, after the central bank’s front-loaded 50bp move this week. It said the easing cycle is likely nearing its end but warned that weaker data could still prompt a larger reduction.
New York Fed chief John Williams said he favours additional rate cuts this year to support a cooling labour market. While inflation has climbed above target, he expects tariff effects to fade and emphasised that maintaining Fed independence remains essential amid political attacks.
The EUR/USD tumbles below the 1.1600 figure, losing over 0.50% as the US Dollar extended its weekly rally, posting gains of more than 1.70% against a basket of six currencies, the DXY, sponsored by a risk-off mood.
Japan’s next prime minister-in-waiting, Sanae Takaichi, pledged immediate stimulus and a gasoline-tax cut, but her calls for coordination of fiscal and monetary policy revived concerns she may challenge the BOJ’s independence. Markets fear political pressure could slow rate hikes, though inflation and a weak yen may ultimately restrain her.
Gold price retreated during the North American session on Thursday after hitting a record high of $4,058, plunges below $4,000 as the Greenback posts solid gains.. XAU/USD trades at $3,978, down 1.5%.
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