EUR/USD
Danske Bank’s Danske Research Team notes that EUR/USD is trading close to 1.18 as markets await key Euro area inflation data. The bank expects Euro area HICP inflation to edge up slightly to 1.73% year-on-year, with core inflation steady at 2.2%. Softer preliminary inflation prints from France, Spain and Germany could add downward pressure on Euro rates.
GBP/USD
The Pound Sterling (GBP) retreats over 0.11% on Thursday as the Greenback remains steady following a report that the number of Americans applying for unemployment benefits was below estimates last week, an indication of the resilience of the labor market. At the time of writing, GBP/USD trades at 1.3544 after reaching a daily high of 1.3575.
USD/JPY
The USD/JPY pair attracts some sellers for the second straight day following the release of Tokyo inflation figures and slides to the 155.65 area during the Asian session on Friday. Spot prices, however, remain on track to register gains for the second week in a row, and the fundamental backdrop warrants caution before positioning for an extension of the corrective fall from a two-week top, touched on Wednesday.
AUD/USD
The AUD/USD pair regains positive traction on Friday and climbs back closer to over a two-week top, around the 0.7110-0.7115 region, during the early part of the European session. Spot prices remain close to a two-year peak set earlier this month and seem poised to register gains for the sixth consecutive week.
NZD/USD
The NZD/USD pair is up 0.16% to near 0.5990 during the Asian trading session on Friday. The kiwi pair gains as the US Dollar (USD) ticks up, while investors seek fresh cues on the United States (US) interest rate outlook.
USD/CAD
USD/CAD depreciates after holding ground in the previous session, trading around 1.3660 during the Asian hours on Friday. The pair loses ground as the Canadian Dollar (CAD) receives support from improved Oil prices, given Canada’s status as the largest crude exporter to the United States (US).
USD/CHF
USD/CHF edges lower after registering little gains in the previous session, trading around 0.7730 during the Asian hours on Friday. The pair declines as the Swiss Franc (CHF) gains on safe-haven demand amid renewed trade and geopolitical tensions. Investors await Switzerland’s Swiss Gross Domestic Product (GDP) data later in the session.
CRUDE OIL
Oil prices fell in Asian trade on Friday after the U.S. and Iran agreed to extend their discussions over Tehran’s nuclear plans, while markets also watched for the impact of increasing sales of Venezuelan crude.
Gold prices are holding firm near recent highs as persistent haven demand continues to offset signs of short term momentum fatigue. While the metal has struggled to generate clean upside follow through above the 5200 area, the broader macro backdrop remains supportive enough to keep downside pressure contained.
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