EUR/USD
EUR/USD remains steady after registering gains in the previous three successive sessions, trading around 1.1660 during the Asian hours on Friday. The pair may regain its ground as the US Dollar could struggle as markets are pricing in nearly a 93% possibility of a 25 basis point cut at the Fed’s September meeting.
GBP/USD
The GBP/USD pair posts modest losses near 1.3440 during the Asian trading hours on Friday. The US Dollar strengthens against the Pound Sterling after Federal Reserve Governor Christopher Waller has reportedly emerged as the top contender to succeed embattled Fed Chair Jerome Powell.
USD/JPY
The Japanese Yen (JPY) drifts lower during the Asian session on Friday after the Summary of Opinions from the Bank of Japan’s (BoJ) July meeting showed that policymakers remain worried about the US tariffs uncertainty. Adding to this, receding safe-haven demand turns out to be another factor undermining the JPY. This, along with the emergence of some US Dollar (USD) buying, assists the USD/JPY pair to rebound from the 146.70 pivotal support.
AUD/USD
The Australian Dollar (AUD) depreciates against the US Dollar (USD) on Friday, after three days of gains. The AUD/USD pair loses ground as traders are pricing in over 92% odds of a 25 basis point rate cut by the Reserve Bank of Australia (RBA) next week, which would bring the cash rate down to 3.60%.
NZD/USD
The NZD/USD pair trades with mild losses near 0.5960 during the early Asian trading hours on Friday. However, the potential downside for the pair might be limited amid encouraging Chinese trade data. Traders will focus on the Federal Reserve’s Alberto Musalem speech later on Friday.
USD/CAD
The USD/CAD pair struggles to gain any meaningful traction and oscillates in a narrow range, below mid-1.3700s during the Asian session on Friday. Meanwhile, spot prices remain close to a one-week low touched the previous day and seem poised to register weekly losses amid a bearish US Dollar (USD).
USD/CHF
USD/CHF remains steady for the second consecutive day, hovering around 0.8060 during the Asian trading hours on Friday. However, the pair may appreciate as the Swiss Franc (CHF) could receive downwards pressure due to newly enacted 39% tariffs on United States (US) imports from Switzerland.
CRUDE OIL
Oil prices moved little in Asian trade on Friday, but were nursing a sharp weekly loss amid concerns over a tariff-driven cooling in demand and a looming supply glut.
Gold price drifts lower on Friday amid some profit-taking, though it lacks follow-through. The risk-on mood and a modest USD rebound exert some pressure on the precious metal. Trade jitters and bets for a September rate cut by the Fed lend support to the XAU/USD pair.
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