EUR/USD
EUR/USD continues its winning streak for the third successive day, holding firm above 1.1500 in the European session on Friday. The pair stands tall as the US Dollar loses ground, possibly driven by a technical pullback and receding fears over a likely US military attack on Iran. Geopolitics remain in focus.
GBP/USD
GBP/USD pares gains while trading under 1.3500 in European trading on Friday. The pair stalls its upside after the Pound Sterling faces headwinds from the downbeat UK Retail Sales data for May. Broad US Dollar weakness, amid easing Middle East tensions, keeps the major underpinned.
USD/JPY
The Japanese Yen (JPY) trades with a mild positive bias against its American counterpart through the early European session on Friday, though it lacks bullish conviction and remains close to the monthly low touched the previous day. Data released earlier today showed that Japan’s annual National Consumer Price Index (CPI) remained well above the Bank of Japan’s (BoJ) 2% target in May. This reaffirms market bets that the BoJ will hike interest rates again, which, along with rising geopolitical tensions, acts as a tailwind for the safe-haven JPY.
AUD/USD
The Australian Dollar (AUD) retraces its recent losses on Friday. The AUD/USD pair remains stronger following the release of the interest rate decision from China. However, the upside of the pair could be limited due to dampened risk sentiment amid escalating Middle East tension.
NZD/USD
The NZD/USD pair loses ground to near 0.5990 during the early Asian session on Friday. The US Dollar (USD) strengthens against the New Zealand Dollar (NZD) amid rising fears over a potential spread of the conflict in the Middle East. Traders brace for the People’s Bank of China’s (PBoC) interest rate decision and the US Philly Fed Manufacturing Index later on Friday.
USD/CAD
The USD/CAD pair holds steady near 1.3700 during the early European trading hours on Friday. However, fears of US involvement in Middle East conflict could spark demand for the US Dollar (USD), a safe-haven currency. The White House said US President Donald Trump will make a decision within the next two weeks about whether to join Israel in the war.
USD/CHF
The USD/CHF pair loses momentum to around 1.3690, snapping the three-day winning streak during the Asian trading hours on Friday. Fears of US involvement in Middle East conflict spark demand for the Swiss Franc (CHF), a safe-haven currency. The US Philly Fed Manufacturing Index will be published later on Friday.
CRUDE OIL
Oil prices fell sharply in Asian trade on Friday, giving back some recent gains after the White House signaled that President Donald Trump will only decide on entering the Iran-Israel war in two weeks.
Gold price comes under renewed selling pressure despite a combination of supporting factors. A weaker risk tone and some follow-through USD selling do little to support the XAU/USD pair. The mixed fundamental backdrop warrants some caution before positioning for deeper losses.
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