EUR/JPY trades around 185.70 on Friday at the time of writing, virtually unchanged on the day. The Japanese Yen (JPY) gains some support from firmer Japanese inflation data, but the move is offset by resilience in the Euro (EUR) following better-than-expected activity indicators in the Eurozone.
The Dow Jones Industrial Average trades roughly 430 points higher at just above 53,200, taking back the larger part of a Thursday decline that ran close to 690 points.
Rabobank's Bas van Geffen, analyses how forthcoming structural Longer-term Refinancing Operations (LTROs) could complement the European Central Bank's (ECB) standard refinancing operations as excess liquidity declines.
The Pound Sterling (GBP) loses some ground against the US Dollar (USD) on Friday, though it remains poised to end the week with gains of over 0.60%, even as UK Retail Sales disappointed investors and US business activity improved in August.
AUD/USD edges higher on Friday, climbing to its highest level since June 3 as the Australian Dollar (AUD) outperforms all its major peers.
Commerzbank’s Senior Economist Dr. Vincent Stamer notes that Euro area business sentiment has stabilized at a moderate level, with the composite PMI edging up from 52.0 to 52.1 in August, slightly above consensus.
Nomura’s European Economics team highlights that UK composite output PMI rose to 52.5 in August, with services offsetting weaker manufacturing. GfK consumer confidence improved to its highest level in two years, supporting activity.
The Euro (EUR) is falling against the British Pound (GBP). EUR/GBP held the mid-0.8500s on Friday, hovering just below the 0.8570 area, even after a strong round of August flash Purchasing Managers Indexes (PMIs) on both sides of the cross.
TD Securities strategists argue that Kevin Warsh’s Jackson Hole speech will focus on structural themes such as productivity, AI-driven growth and Federal Reserve (Fed) regime change.
Brown Brothers Harriman’s (BBH) Elias Haddad reports EUR/USD is firmer on broad US Dollar (USD) weakness and stronger-than-expected Eurozone August Purchasing Managers' Index (PMI) data. Elias Haddad highlights the composite PMI at a nine-month high, driven by manufacturing.
USD/JPY trades around 158.85 on Friday at the time of writing, edging lower after rebounding from the 158.00 level on Thursday.
Norman Liebke at Commerzbank warns that low European gas storage, suspended LNG exports from Qatar and the end of the refilling phase are keeping European gas prices elevated.
Royal Bank of Canada economists Nathan Janzen and Abbey Xu expect Canadian gross domestic product data for June and Q2 to confirm a strong rebound after winter stagnation.
EUR/USD reverses its earlier gains on Friday as the US Dollar (USD) steadies after retesting the three-month low touched the previous day. At the time of writing, the pair trades around 1.1677, easing from an intraday high of 1.1711, its highest level since May 14.
Scotiabank strategists Shaun Osborne and Eric Theoret point out that Japan’s July Consumer Price Index (CPI) and stronger August Purchasing Managers' Index (PMI) data support expectations for Bank of Japan (BoJ) tightening, with about 20 bps of hikes priced in swaps.
TD Securities’ Ryan McKay and Bart Melek note that Gold and broader precious metals are trading in a higher range that could trigger another round of CTA (Commodity Trading Advisors) buying.
Brown Brothers Harriman’s (BBH) Elias Haddad says GBP/USD is firmer on broad US Dollar (USD) weakness despite mixed United Kingdom (UK) data.
Scotiabank strategists Shaun Osborne and Eric Theoret note that the Canadian Dollar (CAD) continues to show strength against the US Dollar (USD).
Nomura’s European Economics team notes that Euro area August Purchasing Managers' Index (PMI) showed resilient growth, led by a strong manufacturing rebound, while price pressures eased.
USD/CAD extends its decline on Friday as broad US Dollar (USD) weakness and elevated Oil prices provide a double boost to the Canadian Dollar (CAD). At the time of writing, the pair trades around 1.3745, while the Loonie is on track for a fourth consecutive weekly gain.
Commerzbank’s Barbara Lambrecht says tensions around the Strait of Hormuz and tight diesel inventories continue to support Brent. With prices near USD 94 and almost 20% above their early-August lows, Brent remains well below its April peak.
West Texas Intermediate (WTI) US Oil trades around $86.50 on Friday at the time of writing, up 0.63% on the day. US Oil remains close to Thursday’s high of $87.38, its highest level in more than three weeks, as concerns about global energy supplies continue to support prices.
TD Securities strategists argue that the United States (US) Treasury buyback announcement has reinforced bearish momentum for the Dollar.
Brown Brothers Harriman’s (BBH) Elias Haddad highlights USD/JPY testing key support at its 200-day moving average as Japanese data firm.
Standard Chartered’s Aldian Taloputra assesses Indonesia’s 2027 fiscal plans, noting a targeted deficit of 2.4% of GDP versus 2.9% in 2026. The bank maintains its own forecast of a 2.9%-of-GDP deficit, citing ambitious revenue assumptions and potential tax shortfalls.
Commerzbank’s Carsten Fritsch notes Gold has surged, breaking above USD 4,500 per troy ounce as safe‑haven demand rises on US debt concerns and a weaker Dollar.
EUR/GBP remains stuck in a narrow trading range this month, stalling the rebound from near 0.8460 in mid-July as buyers struggle to clear the 50-day Simple Moving Average (SMA).
British Pound's (GBP) rally against the Japanese Yen (JPY) was capped at the 217.00 area earlier on Friday, and the pair pulled back to the 216.50 area where it found some support.
Gold (XAU/USD) is heading for a third consecutive weekly gain on Friday, extending an impressive rally that has lifted the precious metal by around 13% so far this month. At the time of writing, XAU/USD trades around $4,603, its highest level since May 15.
US business activity is predicted to have gained momentum in August, according to the flash reading of S&P Global’s Composite PMI, which ticked up to 56 from 54.5 in July.
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