EUR/USD
EUR/USD has managed to hold onto its gains this week, though the move feels more like a reaction to a softer dollar than any real improvement in eurozone fundamentals. Yesterday’s German ZEW Expectations Index for November didn’t offer much optimism, continuing to signal that sentiment in Europe’s largest economy remains fragile. Interestingly, the aggregate ZEW reading for the wider eurozone ticked higher, which raises the question of whether Germany is increasingly becoming an outlier rather than the driver of broader regional momentum.
GBP/USD
GBP/USD retraces its recent gains from the previous session, trading around 1.3150 during the Asian hours on Friday. The pair depreciates as the Pound Sterling (GBP) declines amid rising concerns over fiscal discipline and political stability in the United Kingdom (UK).
USD/JPY
The USD/JPY pair declines to near 154.50 during the early Asian session on Friday. The US Dollar (USD) softens against the Japanese Yen (JPY) as bets on a Federal Reserve (Fed) rate cut in December remain pretty divided. The Fed’s Lorie Logan and Raphael Bostic are due to speak later in the day.
AUD/USD
The Australian Dollar (AUD) advances against the US Dollar (USD) on Friday, recovering losses registered in the previous session. The AUD/USD pair gains ground following the release of China’s Industrial Production and Retail Sales data for October. Any change in the Chinese economy could impact the AUD as China is a major trading partner for Australia.
NZD/USD
The NZD/USD pair holds positive ground around 0.5675 during the Asian trading hours on Friday. The New Zealand Dollar (NZD) remains firm against the US Dollar (USD) after the release of the Chinese October Retail Sales and Industrial Production reports. Traders will take more cues from the Federal Reserve (Fed) officials later on Friday, including the Fed’s Lorie Logan and Raphael Bostic.
USD/CAD
USD/CAD inches lower after registering gains in the previous session, trading around 1.4020 during the Asian hours on Friday. The pair remains subdued as the commodity-linked Canadian Dollar (CAD) receives support from higher Oil prices. It is worth noting that Canada is the largest crude exporter to the United States (US).
USD/CHF
The USD/CHF pair ticks down to near 0.7920 during the late Asian trading session on Friday. The Swiss Franc pair struggles to gain ground after revisiting an over three-week low of 0.7910 posted on Thursday. The pair is under pressure as the US Dollar (USD) underperforms even as traders have trimmed bets supporting an interest rate cut by the Federal Reserve (Fed) in the December policy meeting.
CRUDE OIL
Oil prices jumped about 2% on Friday on supply fears after a Ukrainian drone attack hit an oil depot in the Russian Black Sea port of Novorossiysk, a major export hub.
Gold (XAU/USD) struggles to find acceptance above the $4,200 round figure and surrenders a major par to its modest intraday gains heading into the European session on Friday. A growing number of Federal Reserve (Fed) policymakers signaled caution on further easing amid the lack of economic data, prompting traders to trim their bets for another rate cut in December. This, in turn, is seen as a key factor acting as a headwind for the non-yielding yellow metal.
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