US dollar
Amid quiet trading, the market mood was buoyed by fresh hopes of a US-China trade deal after the US President Trump hinted overnight that he would prefer to get a whole deal done with China rather than an interim deal. The Asian stocks rallied while the US equity futures traded with mild gains.
However, the Treasury yields were on the defensive amid increased dovish Fed expectations and ahead of the key US macro releases due later Friday.
The USD/JPY pair reversed an early uptick to fresh multi-week tops and is currently placed at the lower end of its daily trading range, around the 108.00 handle. Heading into Europe, the EUR/USD pair extends the overnight recovery and pass 1.1100 handle while the GBP/USD climbs to a fresh seven-week high over the 1.2400 handle as the pound strengthens amid some weakness in the dollar as well
After an eventful ECB monetary policy announcement on Thursday, Friday’s EUR calendar remains a thin-showing, with the Spanish CPI and Eurozone Trade Balance due at 09:00 GMT of note. The UK docket is empty and hence, markets will take cues from the Brexit developments and trade-related headlines for near-term trading opportunities.
All eyes remain on the US calendar, with a host of critical data, including Retail Sales, Import Price Index and Michigan Preliminary Consumer Sentiment Index, which be closely eyed ahead of next week’s FOMC decision. Oil markets will closely follow any updates on the US-Iran geopolitical tensions ahead of the Baker Hughes US Oil Rig Count data at 17:00 GMT.
Oil futures fell on Friday as concerns about global growth and slowing demand lingered despite hints of progress on U.S.-China trade talks, setting up prices for weekly losses after days of swinging back and forth.
Gold prices gave up their gains after rallying following the European Central Bank’s decisions to cut rate and promise quantitative easing, but manage to hold over the $1,500 mark.