The USD/CAD pair holds steady around the 1.3900 zone on Friday as markets weigh fresh US-China trade headlines and stronger oil prices against a firmer Greenback.
The EUR/GBP pair was seen trading near the 0.8500 mark during Friday's session, edging lower intraday yet holding within the mid-range of 0.8511 to 0.8548. Investors appear cautious amid a light macroeconomic backdrop, with the pair moving in sync with subtle shifts in broader market sentiment.
The EURUSD pair was seen hovering near the 1.1400 region on Friday after easing slightly in the aftermath of the European session. The pair is consolidating within a narrow range between 1.1315 and 1.1391, reflecting a pause in bullish momentum while still holding ground near recent highs.
The Pound Sterling registers losses against the strong US Dollar, yet it remains above 1.3300. A strong UK Retail Sales report failed to underpin Cable, which registers losses of 0.20% as the GBP/USD trades at 1.3311.
Silver price (XAG/USD) plunges more than 1.5% to near $33.00 during North American trading hours on Friday. The white metal falls sharply from its three-week high of $33.70 posted earlier in the day.
Bank of England (BoE) policymaker Megan Greene said on Friday that they are not sure if the weakness in the UK economy is caused by demand or supply, per Reuters.
The USD/JPY pair is expected to conclude the week on a positive note above 143.00. The pair surges to near 143.50 on Friday as the US Dollar (USD) has resumed its recovery move on hopes that United States (US) President Donald Trump is close to make deals with number of his trading partners.
After US President Trump backtracked significantly on both tariffs against China and the dismissal of Fed Chair Powell, the price of Gold temporarily fell back below $3,300 per troy ounce, Commerzbank's FX analyst Thu Lan Nguyen notes.
Given this situation, it is hardly conceivable that Kazakhstan will limit oil production as planned, let alone compensate for the current overproduction with larger production cuts, Commerzbank's commodity analyst Carsten Fritsch notes.
Japanese Yen (JPY) is weak, down 0.7% against the US Dollar (USD) and underperforming most of the G10 currencies in an environment of broad-based USD strength, Scotiabank's Chief FX Strategist Shaun Osborne notes.
According to a Reuters report, the eight OPEC+ countries with voluntary production cuts could also increase oil production more significantly in June, Commerzbank's commodity analyst Carsten Fritsch notes.
Pound Sterling (GBP) is down a modest 0.3% and showing relative gains against nearly all the G10 currencies, once again trading in tandem with its peers on trade-related headlines while still lagging in terms of magnitude, Scotiabank's Chief FX Strategist Shaun Osborne notes.
In the middle of next week, the World Gold Council (WGC) will publish its report on gold demand in the first quarter. This is likely to show that the sharp rise in the gold price in the first three months of the year was driven by strong investment demand.
The Canadian Dollar (CAD) is marginally softer on the session but holding up better than its major currency peers to the USD’s broader rebound, Scotiabank's Chief FX Strategist Shaun Osborne notes.
The price of Brent oil rose to more than $68 per barrel this week, reaching its highest level since the announcement of reciprocal tariffs by US President Trump at the beginning of April, Commerzbank's commodity analyst Carsten Fritsch notes.
The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against six major currencies, trades on the front foot, up around 0.40% on Friday at the time of writing.
Markets are ending the week on a steadier note. The USD is a little stronger, US equity futures slipping back after yesterday’s pop higher and US Treasurys are a little firmer.
Next week, China will release its official PMIs, which, unlike in other countries, are always released on the last day of the month rather than the first day of the following month.
The AUD/USD pair falls sharply to near 0.6380 in Friday’s North American session. The Aussie pair weakens as the US Dollar (USD) resumes its upside recovery after a corrective move on Thursday.
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