NZD/USD falls for the fourth consecutive day and trades around 0.5750 on Friday, down 0.17% at the time of writing, pressured by renewed risk aversion and the resilience of the US Dollar (USD).
ING’s Deepali Bhargava warns that higher Oil prices and supply disruptions are worsening growth, inflation and external balances in the Philippines.
United States Baker Hughes US Oil Rig Count down to 409 from previous 414
Standard Chartered’s Dan Pan and Erwin He note that Banxico’s surprise 25 bps cut and guidance for another easing step have increased downside risks for the Mexican Peso (MXN). They highlight crowded MXN long positioning and a narrower carry advantage versus other EM high-yielders.
The British Pound (GBP) holds firm during the North American session on Friday, clings above the 1.3300 figure, yet seems poised to finish the week with 0.20% losses against the US Dollar (USD).
West Texas Intermediate (WTI) US Oil rises sharply and trades around $96.00 at the time of writing on Friday, up 3.55% on the day.
Gold (XAU/USD) edges higher on Friday, rebounding after falling nearly 2.75% the previous day, as evolving geopolitical headlines around the US-Israel war with Iran continue to drive volatility across global markets. At the time of writing, XAU/USD is trading around $4,527, up over 3.00% on the day.
Federal Reserve (Fed) Richmond President Thomas Barkin said on Friday that it is prudent to keep interest rates steady for now, as policymakers await greater clarity on the economic outlook.
EUR/USD edges higher on Friday after early weakness, as the US Dollar (USD) pulls back from intraday highs, offering some support to the Euro (EUR). At the time of writing, the pair trades around 1.1545, recovering from a daily low at 1.1501.
ING notes that ECB officials have offered little resistance to hawkish market pricing as Oil rises, reinforcing front-end EUR rate expectations.
Thu Lan Nguyen at Commerzbank has revised Gold forecasts higher, now seeing USD 5,000 per ounce by end-2026 and USD 5,200 next year, despite a recent 15% drop.
Royal Bank of Canada (RBC) economists Claire Fan and Abbey Xu expect Canadian GDP to be essentially flat in January after December’s 0.2% gain, with weakness concentrated in autos and housing but offset by energy and retail.
