The Canadian Dollar (CAD) underperforms its major currency peers on Friday. The North American currency faces selling pressure as Oil prices have retreated sharply after posting a fresh four-month high.
Danske Research Team explains that Sweden’s July Gross Domestic Product (GDP) indicator was weak, but underlying domestic activity appears stronger, with solid services and consumption data.
MUFG’s Lee Hardman highlights that the stronger United States (US) Producer Price Index (PPI) data has reinforced expectations for a Federal Reserve (Fed) rate hike, with around 18 bps now priced for next week’s FOMC meeting.
The GBP/USD pair struggles to capitalize on its modest intraday gains and trades near the 1.3500 psychological mark during the first half of the European session on Friday.
United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann flag a sudden AUD/USD selloff to 0.7156, with intraday momentum pointing to further losses toward 0.7140, though 0.7120 is seen as strong support for now.
The US Bureau of Labor Statistics (BLS) will publish the August Consumer Price Index (CPI) data on Friday. The report is expected to show a small decline in annual core inflation.
Francesco Pesole at ING argues that despite stronger United Kingdom (UK) Gross Domestic Product (GDP) data and resilient Sterling, the move in Gilts is largely externally driven and not about domestic fiscal fears.
The Euro (EUR) retreated below 179.00 against the Japanese Yen (JPY) on Friday, as the mild recovery seen after Thursday's European Central Bank (ECB) meeting failed to find follow-through above 179.50.
The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, sticks to a mildly positive bias through the early European session, though it remains confined within the previous day's broader range.
Commerzbank’s Antje Praefcke reports that the Polish central bank kept its key rate at 3.75%, while Governor Glapiński signalled no cuts until year-end after previously sounding dovish.
The Euro (EUR) trades subduedly at around 1.1608 against the US Dollar (USD) during the European trading session on Friday.
EUR/CAD experienced volatility but remained flat for the second successive day, hovering around 1.6060 during European hours on Friday. The currency cross may rise as the Euro (EUR) could receive support due to ongoing hawkish sentiment surrounding the European Central Bank (ECB) policy outlook.
ING’s Commodities Strategist Ewa Manthey notes that Copper has dropped sharply after a Reuters report suggested a US decision on refined Copper tariffs is still pending, highlighting how a tariff premium has driven prices beyond fundamentals.
Here is what you need to know on Friday, September 11:
Dow Jones futures advance by 0.46% to trade near 52,350 during European hours on Friday. Meanwhile, S&P 500 futures gain by 0.44% to trade around 7,630, while Nasdaq 100 futures inch lower by 0.45% to trade near 29,260.
Silver (XAG/USD) finds some support near the $63.00 mark and stages a modest intraday recovery from an over three-week low, touched earlier this Friday.
United Kingdom (UK) Chancellor of the Exchequer John Healey said during the European trading session on Friday, “Britain’s economy is demonstrating a welcome resilience, despite serious global uncertainty.”
Danske Research Team reports that Norwegian core inflation rose to 3.0% year-on-year in August, below Norges Bank’s June projection of 3.3%.
The Japanese Yen (JPY) ticks up against the US Dollar (USD) on Friday, trimming some losses after a moderate reversal on Thursday.
United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann note that USD/CHF has broken higher toward 0.8147, with overbought but still constructive momentum suggesting scope to test 0.8155 intraday.
Commerzbank’s Tatha Ghose expects the Russian central bank to keep its key rate at 14.0%, arguing inflation fundamentals do not justify further easing despite weak growth.
GBP/JPY depreciates after registering gains in the previous day, trading around 208.30 during Asian hours on Friday. The currency cross loses ground as the British Pound (GBP) remains subdued against the Japanese Yen (JPY) following the release of key economic data from the United Kingdom (UK).
The NZD/USD pair rises to around 0.5835, snapping the four-day losing streak during the early European trading hours on Friday. However, the potential upside for the pair might be limited as markets turn cautious ahead of the key US Consumer Price Index (CPI) inflation data later on Friday.
The Australian Dollar (AUD) is up 0.22% at around 0.7175 against the US Dollar (USD) during the European trading session on Friday.
Danske Research Team notes that global equities fell around 0.5% despite a hawkish European Central Bank message and sharp yield curve moves.
The European Central Bank (ECB) Governing Council member Joachim Nagel said on Friday that its’ too early to speculate on rate hikes.
ING analysts Warren Patterson and Ewa Manthey note that Brent and WTI have rallied sharply as Middle East tensions escalate and Saudi Arabia reports a steep drop in output.
UK data released on Friday showed that Gross Domestic Product (GDP) rose 0.4% in July, above expectations of a flat reading and following a 0.3% rise in June.
The Indian Rupee (INR) extends its downward spiral against the US Dollar (USD) for the fourth trading day on Friday, with the USD/INR pair rising to near 95.80 in the opening session.
Gold (XAU/USD) clings to modest recovery gains around $4,450 through the first half of the European session, albeit it lacks bullish conviction as traders await the release of US consumer inflation figures.
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