USD

Markets today saw a flip on the risk sentiment, from a mixed set of Chinese trade data for March, and the favourable atmosphere around the risk-associated complex is supporting the mood in the European currency. Euro was slightly higher against the Dollar in early trade in Europe on Friday, supported by signs of an economic rebound in China and reports of buying related to a big cross-border acquisition.

Pound continues to slip amid the prospect of more months of Brexit-related uncertainty, while the Dollar rose against the Yen on the back of better-than-expected jobless claims and producer price inflation data on Thursday.

A relative light calendar today, with the UK docket remaining data-empty. Next of relevance for the EUR traders is the Industrial Production in Euroland for the month of February and will be the sole release of the session, due at 09:00 GMT. Moving forward, in the NA session, the Import/Export Prices are due at 12:30 GMT and the preliminary Michigan Consumer Sentiment Index at 14:00 GMT. Energy traders will focus on the weekly release of the Baker Hughes US rig counts at 17:00.

Oil prices edged higher on Friday, from yesterday’s lows, lifted by ongoing supply cuts led by producer club OPEC and by U.S. sanctions on petroleum exporters Iran and Venezuela. The energy benchmark was on a back-foot yesterday as pessimistic economic views from the IMF and IEA join disappointing stocks report and data, having shown a sharp pull-back to $63.30 in the US session yesterday.

Gold prices recovered slightly on Friday in Asia, but still traded below the key $1,300 level and are now near its lowest level of the month. Strong U.S. labour and inflation data were cited as headwinds for the safe-haven gold today. Meanwhile, the minutes published from the FOMC meeting showed the U.S. Federal Reserve has still not completely ruled out raising interest rates this year, putting pressure on the non-interest-bearing gold.