EUR/USD holds its position near 1.0850 during the early European session on Friday, following a backslide in the previous session. Additionally, the better-than-expected US GDP data helped the US Dollar to mark profits on Thursday, acting as a headwind for the pair.
The GBP/USD pair struggles to gain any meaningful traction on Friday and oscillates in a narrow trading band, just above the 1.2700 mark. Spot prices, meanwhile, remain well within the striking distance of a nearly two-week high touched on Wednesday.
USD/JPY trims some of its intraday gains, hovering around 147.60. However, the USD/JPY pair attempted to recover the losses registered in the previous session after the release of upbeat United States (US) Purchasing Managers Index (PMI) data. Furthermore, Tokyo Consumer Price Index data will be eyed Today.
Most Asian currencies kept to a tight range on Friday, while the dollar steadied after an overnight bounce following strong economic growth data, with a key inflation reading and a Federal Reserve meeting now in focus. Regional trading volumes were also held back by holidays in Australia and India. But the Australian dollar firmed slightly in offshore trade.
The NZD/USD pair trades on a weaker note above the 0.6100 mark during the early Asian session on Friday. The stronger GDP growth number lends some support to the US Dollar (USD) and weighs on the NZD/USD pair. Investors will take more cues from the US Core Personal Consumption Expenditures Price Index (Core PCE) on Friday for fresh impetus. This event might trigger volatility in the market. At press time, the pair is trading at 0.6109, down 0.03% for the day.
The USD/CAD pair trades in negative territory for the second consecutive day during the early Asian trading hours on Friday. The release of the Core Personal Consumption Expenditures Price Index (Core PCE) for December, the Fed’s preferred inflation measure, will be a closely watched event on Friday. At press time, USD/CAD is trading at 1.3472, losing 0.01% on the day.
USD/CHF consolidates near 0.8670 during the Asian trading hours on Friday. The US Dollar (USD) appreciated against the Swiss Franc (CHF) following the release of Gross Domestic Product (GDP) data from the United States. The better-than-expected GDP figures in the fourth quarter might have decreased the likelihood of the Federal Reserve’s (Fed) reducing policy rates in the March meeting, which in turn, underpins the USD/CHF pair.
Oil prices eased on Friday after rising to their highest since December in the previous session, but were set for their biggest weekly gain since October as positive U.S. economic growth and signs of Chinese stimulus boosted fuel demand sentiment.
Gold price attracts some buyers for the second straight day amid sliding US bond yields. Geopolitical risks and the uncertain global economic outlook further benefit the metal. Delayed Fed rate cut bets could cap gains ahead of the release of the US PCE Price Index.
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