EUR/USD
EUR/USD holds ground after five days of losses, trading around 1.1650 during the Asian hours on Friday. Traders remain cautious ahead of the US Nonfarm Payrolls (NFP) report, which is expected to offer further insight into labor market conditions and the Federal Reserve’s (Fed) policy outlook. December NFP is forecast to show job gains of 60,000, down from 64,000 in November.
GBP/USD
The GBP/USD pair is seen consolidating in a narrow range and trading around the 1.3435 region during the Asian session on Friday, just above the weekly low retested the previous day. Traders now seem reluctant and opt to move to the sidelines ahead of the release of the highly anticipated US Nonfarm Payrolls (NFP) report later today, before placing fresh directional bets.
USD/JPY
The Japanese Yen (JPY) slides to a nearly three-week trough against a broadly firmer US Dollar (USD) heading into the European session on Friday and seems vulnerable to slide further. Worries that consumption momentum could fade if inflation continues to outpace wage growth in early 2026 overshadow an unexpected rise in Japan’s Household Spending data for November. This, in turn, adds to the uncertainty over the timing of the next Bank of Japan (BoJ) interest rate hike and undermines the JPY amid an escalating China-Japan row.
AUD/USD
The Australian Dollar (AUD) declines against the US Dollar (USD) on Friday, remaining subdued for the third successive session. The AUD/USD pair remains subdued following the release of key economic data from China, a key trading partner of Australia.
NZD/USD
The NZD/USD pair remains under some selling pressure for the fourth straight day and trades just below mid-0.5700s during the Asian session on Friday. Spot prices remain depressed and move little following the release of the latest inflation figures from China, as traders keenly await the highly anticipated US Nonfarm Payrolls (NFP) report, due later today.
USD/CAD
USD/CAD continues its winning streak that began on January 2, trading around 1.3870 during the Asian hours on Friday. Traders await the US Nonfarm Payrolls (NFP) report, which is expected to offer further insight into labor market conditions and the Federal Reserve’s (Fed) policy outlook. On Canada’s front, Net Change in Employment and Unemployment Rate for December will also be eyed.
USD/CHF
USD/CHF stays calm after registering gains in the previous three successive sessions, hovering around 0.7990 during the Asian hours on Friday. The pair halts its gains as the Swiss Franc (CHF) remains supported by safe-haven demand amid ongoing geopolitical concerns. Meanwhile, the Swiss 10-year government bond yield advances to near 0.30%.
CRUDE OIL
Oil prices rose for a second day on Friday, set for their third weekly gain, on uncertainty about the future of supply from Venezuela and as Iranian unrest increases concerns about output there.
Gold (XAU/USD) reverses a modest intraday dip to the $4,453 area and trades near the top end of its daily range heading into the European session on Friday. The upside, however, seems limited as traders might opt to wait for the US Nonfarm Payrolls (NFP) report later today. The crucial employment details will be looked upon for more cues about the Federal Reserve’s (Fed) rate-cut path, which, in turn, will drive the US Dollar (USD) demand and provide a fresh directional impetus to the non-yielding yellow metal.
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