EUR/USD
EUR/USD extends gains for the second successive day, trading around 1.1620 during the Asian hours on Friday. The Euro (EUR) finds support as recent Eurozone inflation data solidified market expectations for a near-certain 25-basis-point rate hike by the European Central Bank (ECB) at its June 11 meeting. Traders are pricing in a total of two or three rate increases for the year.
GBP/USD
Sterling is standing on a bet that gets harder to justify by the week. Markets still lean toward Bank of England (BoE) rate hikes this year, even as the economy beneath the Pound flashes contraction rather than the overheating that would normally warrant tighter policy. The Pound is holding up, but it is holding up on borrowed conviction, and the lender is the energy market.
USD/JPY
USD/JPY extends its losses for the second successive day, trading around 159.90 during the Asian hours on Friday. The currency pair depreciated as the Japanese Yen (JPY) found support from heightened fears of government intervention.
AUD/USD
The AUD/USD pair loses momentum to around 0.7120 during the early Asian session on Friday. The Australian Dollar (AUD) softens against the US Dollar (USD) amid a cautious mood and ongoing conflict in the Middle East. The US May employment report will be in the spotlight later on Friday.
NZD/USD
The NZD/USD pair trades near the 0.5870 level on Friday, as the United States Dollar (USD) remains supported by cautious Federal Reserve (Fed) commentary and safe-haven demand amid ongoing uncertainty surrounding Iran.
USD/CAD
USD/CAD depreciates after two days of gains, trading around 1.3900 during the Asian hours on Friday. The pair declines as the commodity-linked Canadian Dollar (CAD) gains support from rising oil prices.
USD/CHF
USD/CHF remains subdued for the second successive day, trading around 0.7890 during the Asian hours on Friday. The Swiss Franc (CHF) strengthened despite softer-than-expected inflation data, which cooled market anticipation of an upcoming Swiss National Bank (SNB) rate hike. May’s annual inflation held steady at 0.6%, marking its highest level since late 2024 but missing the 0.8% consensus forecast.
CRUDE OIL
Oil prices rose in Asian trade on Friday after Iran-backed group Hezbollah rejected a ceasefire between Lebanon and Israel, undermining U.S. efforts to broker peace in the Middle East.
Gold price (XAU/USD) attracts some sellers to near weekly low during the early European session on Friday. The precious metal remains volatile amid ongoing geopolitical turmoil. Traders will closely monitor the developments surrounding the US-Iran peace deal and the US May employment report later on Friday.
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