Daily market news

The GBP/USD pair rebounded towards 1.2540 after the release of US inflation data and the Bank of England's (BoE) monetary policy decision on Thursday.

The Euro (EUR) trades broadly steady in the mid-1.0300s against the US Dollar (USD) on Friday even after President-elect Donald Trump threatened Europe with tariffs "all the way" unless it purchased more US energy products, Scotiabank’s Chief FX Strategist Shaun Osborne says.

EUR/USD gains a temporary ground near the yearly low as the Euro (EUR) gets firm footing against the approval of taxation reforms by German lawmakers, which will result in a reduction in annual tax revenue by 14 billion euros.

The Yen is picking up from five-month lows on Friday, supported by a somewhat softer US Dollar and hot Japanese inflation figures.

USD/JPY rose sharply after BoJ kept policy rate on hold yesterday. USD/JPY’s rise can also be attributed to the rise in UST yields as Fed guided for slower pace of rate cuts. The pair was last seen at 156.71. Back to BoJ, Governor Ueda’s remarks seem more cautious and appear to be ‘buying time’.

Crude oil prices edged lower with NYMEX WTI closing below $70/bbl while ICE Brent settled below $73/bbl yesterday. The oil market witnessed a second straight session of decline as the strengthening dollar weighs on the complex, ING’s commodity analysts Ewa Manthey and Warren Patterson note.

NZD/USD recovers daily losses to halt its losing streak, trading around 0.5640 during the early European hours on Friday.

USD/CAD retraces its recent losses and edges higher toward 1.4467, the highest level not seen since March 2020, which was recorded in the previous session.

The USD/CHF pair holds positive ground around 0.8980 during the early European session on Friday.

GBP/USD continues to lose ground for the third consecutive day, trading around 1.2490 during the Asian hours on Friday.