EUR/USD picks up bids to refresh a 16-month high above 1.1200 early Friday, rising for the seventh consecutive day to brace for the biggest weekly gain since November 2022. Euro sellers need validation from 1.1180 and mid-tier US/EU data for return.
GBP/USD enters a bullish consolidation phase and trades just below the 15-month peak. Bets that the Fed will soon end its rate-hiking cycle undermine the USD and lend support. Expectations for further policy tightening by the BoE also contribute to limiting the slide.
The USD/JPY pair prolongs its recent downfall for the seventh straight day on Friday and drops to a nearly two-month low, around the 137.75 region during the Asian session. The Japanese Yen (JPY) continues to draw support from growing speculations that the Bank of Japan (BoJ) could tweak its Yield Curve Control (YCC) policy as soon as this month. In contrast, the Federal Reserve (Fed) is expected to hold interest rates after a 25 bps lift-off in July, which keeps the US Dollar (USD) depressed near its lowest level since April 2022 and contributes to the prevailing selling bias surrounding the USD/JPY pair.
AUD/USD renews its intraday low near 0.6880 as it retreats from the highest level in a month after the Australian government announced Michele Bullock as the next Reserve Bank of Australia (RBA) Governor on early Friday. In doing so, the Aussie pair also prints the first daily loss in three while justifying hawkish comments from Federal Reserve Governor Christopher Waller.
The NZD/USD pair is aiming to shift auction above the round-level resistance of 0.6400 in the Asian session. The Kiwi asset has got enormous strength as the US Dollar Index (DXY) has slipped below the psychological support of 100.00. The USD Index has dropped to near 99.60 as the United States economy is swiftly approaching towards 2% inflation scenario due to aggressive policy-tightening from the Federal Reserve (Fed).
The USD/CAD pair licks its wounds around the 1.3100 area, the lowest level in 10 months. The pair remains under pressure following weaker US inflation data earlier in the week. The Bank of Canada (BoC) raised the benchmark interest rates by 25 basis points (bps) to 5.0% in its July policy meeting on Wednesday. BoC Governor Tiff Macklem stated on the policy outlook that additional interest rate hikes are necessary to slow demand growth in the economy and alleviate price pressures. This, combined with the recent rise in crude oil prices to fresh three-month highs, continues to support the commodity-linked Loonie on Friday.
The USD/CHF pair enters a bearish consolidation phase and oscillates in a narrow trading band around its lowest level since January 2015 touched during the Asian session on Friday. Spot prices remain below the 0.8600 mark and seem vulnerable to prolonging a six-day-old bearish trend.
Oil prices rose in Asian trade on Friday, hovering near 10-week highs on the prospect of tighter supplies, amid disruptions in Libya and Nigeria, while data showing a drop in U.S. inflation also supported sentiment.
Gold price is demonstrating a non-directional performance from Thursday after a stalwart rally to near $1,960.00. The precious metal has failed to capitalize on soft inflation and PPI June report, which cleared that households’ demand has turned subdued.
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