EUR/USD
EUR/USD retreated on Thursday after a busy economic docket on both sides of the Atlantic. A benign inflation print in the US and the European Central Bank (ECB) keeping interest rates unchanged at the last meeting of the year, barely moved the needle for the single currency. At the time of writing the pair trades at 1.1722, down 0.16%.
GBP/USD
The GBP/USD pair stalls the previous day’s pullback from the vicinity of mid-1.3400s and a nearly two-month high, though it struggles to attract meaningful buyers during the Asian session on Friday. Spot prices currently trade around the 1.3380-1.3385 region, up only 0.05% for the day, amid mixed cues.
USD/JPY
The Japanese Yen (JPY) sticks to the post-Bank of Japan (BoJ) losses, which, along with a broadly firmer US Dollar (USD), assists the USD/JPY pair to hold steady above the 156.00 mark, or an over one-week high. As was widely expected, the BoJ board members raised the short-term interest rate by 25-basis-point (bps) to 0.75%, the highest in three-decades. In the accompanying policy statement, the central bank said the move should be seen as part of a gradual and cautious process rather than a shift toward restrictive policy. This seems to have tempered market bets for more BoJ rate hikes in 2025, which, in turn, undermines the JPY.
AUD/USD
The Australian Dollar (AUD) declines against the US Dollar (USD) on Friday, losing its daily gains. However, the AUD/USD pair received support as the US Dollar (USD) lost ground amid rising expectations of US Federal Reserve (Fed) rate cuts following the unexpectedly cooled US Consumer Price Index (CPI) inflation in November.
NZD/USD
The NZD/USD pair posts modest gains near 0.5775 during the early Asian session on Friday. The US Dollar (USD) softens against the New Zealand Dollar (NZD) as softer-than-expected US inflation data raises hopes for the US Federal Reserve (Fed) rate cut. Traders await the release of the University of Michigan Consumer Sentiment Index for December, which is due later on Friday.
USD/CAD
USD/CAD remains subdued for the second successive session, trading around 1.3780 during the Asian hours on Friday. The pair faces challenges as the US Dollar (USD) struggles amid rising expectations of US Federal Reserve (Fed) rate cuts following the unexpectedly cooled US Consumer Price Index (CPI) inflation in November. Traders will likely observe the University of Michigan Consumer Sentiment Index for December later in the day.
USD/CHF
USD/CHF recovers its recent losses registered in the previous session, trading around 0.7950 during the Asian hours on Friday. The pair appreciates as the US Dollar (USD) recovers losses ahead of the release of the University of Michigan Consumer Sentiment Index for December later in the day.
CRUDE OIL
Oil prices fell in early trading on Friday and were set to close lower for a second straight week, as rising prospects of a Russia-Ukraine peace deal offset concerns over supply disruptions from a blockade of Venezuelan oil tankers.
Gold price (XAU/USD) declines to below $4,350 during the early European trading hours on Friday. The precious metal edges lower due to some profit-taking and weak long liquidation from shorter-term futures traders.
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