Forex in Friday’s session is driven by mixed market sentiment, as the renewed US-China optimism was somewhat overshadowed by the North Korean news, citing that they are considering suspending nuclear talks with the US. However, the Asian equity markets advanced, led by the rally in the Chinese stocks amid upbeat remarks from China’s Premier Li.
The USD/JPY pair enjoyed good two-way business, having dropped to 111.50 on the North Korean news, but the BOJ’s tweaks to the Japanese economic assessment continued to weigh down on the JPY. Among the European currencies, the Pound wavered in a tight range above the 1.32 handle, awaiting a fresh direction amid looming Brexit uncertainty while the Euro held onto gains above the 1.1300 level amid broad-based US dollar weakness and weaker Treasury yields.
There is nothing of relevance for the EUR, GBP markets in the European session ahead, except for the Eurozone final CPI release due at 10:00 GMT. The NA session kicks-off with the US industrial output and capacity utilization data at 13:15 GMT, soon followed by the US JOLTS job openings and UoM consumer sentiment releases will drop in at 14:00 GMT. The oil traders will look forward to the US Baker Hughes oil rigs count data at 17:00 GMT.
Oil prices were near flat on Friday in Asia after rising to near four-month highs the previous day. Oil prices rose on Thursday, pushed up by ongoing supply cuts led by the Organization of the Petroleum Exporting Countries and as data showed U.S. output slowed last week, boosting optimism that a global surplus is shrinking.
Gold rebounds sharply and retake the $1300 mark and beyond as Brexit pessimism, souring politics at the US, North Korea and China kept risk aversion active. Doubts grew over the US-China trade deal after the US President Donald Trump’s meeting with his Chinese counterpart Xi Jinping was postponed till April than initially anticipated in March. Furthermore, risk aversion was also supported as the US lawmakers were cited criticizing China on human rights violations and North Korea was reported considering suspending nuclear talks with the US.