fundamental_images_3Forex today stuck to tight trading ranges in Asia on the final trading day of this week, as markets remained in a wait and see mode awaiting the outcome of the crucial US-China trade talks. The USD/JPY tried to take out 110.85 barrier, having found buyers again near 110.60 levels, despite moderate risk-off action in the Asian equities. The risk sentiment remained sour as weakening global outlook somewhat offset the optimism over trade progress. GBP/USD stuck around 1.3040, with Brexit details awaited, while EUR/USD extends the consolidation near 1.1345.
Today’s EUR macro calendar started off with the German Q4 final GDP figures at 07:00 GMT, but the main headline for this session is likely to be the German IFO business climate survey for the current month that will drop in at 09:30 GMT. At 10:00 GMT, the Eurozone final CPI readings will be published and with no first-tier economic releases from the UK, focus will be on the Brexit-related developments and CBI Distributive Trades survey due at 11:00 GMT.
The NA session is relatively data-light, with nothing out of the US besides the Baker Hughes US oil rig count data slated for release at 18:00 GMT. Meanwhile, markets eagerly look forward to the outcome on US-China trade front, as the US President Trump is scheduled to meet with the Chinese Vice Premier Liu He at the White House later in the day. During the session though, speeches from global central bankers will be eyed:

  • 1515 GMT: Fed’s Williams
  • 1530 GMT: ECB President Draghi
  • 1700 GMT: Fed’s Clarida
  • 1830 GMT: Fed’s Quarles and Bullard

WTI refrains from extending its previous declines beneath $56.50 on early Friday, after the US reported record production. The early-day positive report from the US-China trade front is likely to limit the energy downside. Looking forward, oil traders are likely to concentrate more on the trade developments considering the affair between the world’s two largest economies. On the background, supply cuts by the OPEC+ and the US sanctions on Iran and Venezuela may also add strength to the upside momentum, if any.
Gold prices were little changed on Friday in Asia as traders weighed the latest positive trade news and a set of weak U.S. data. The safe-haven metal dropped nearly $20 on Thursday as the U.S. and China made progress on discussing a trade deal, however, weak economic data from the U.S. limited additional declines of the precious metal.