The Australian Dollar (AUD) posts marginal gains against the US Dollar (USD) on Friday, but remains near 10-day lows of 0.7110, with upside attempts capped below 0.7135 so far.
European Central Bank (ECB) Governing Council member and Governor of the National Bank of Slovakia (NBS) Peter Kazimir highlights the need for a slight interest rate increase during European trading hours on Friday. Kazimir warned that the Iran war could still significantly slow global growth.
The US Dollar (USD) remains strong against its main peers on Friday, with the USD Index (DXY) steady at the upper range of the 98.00s, as investors are reluctant to take excessive risks. The DXY is on track for a 0.4% weekly gain as tensions between the US and Iran escalate.
The Indian Rupee (INR) slides further against the US Dollar (USD) on Friday, extending its losing streak for the fifth trading day.
United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann note USD/JPY has pushed up to 159.84, validating earlier expectations for a retest of 159.65. While upward momentum is slowing, they still look for the pair to edge higher within a 159.40–160.05 intraday band.
EUR/JPY trades around 186.70 on Friday, posting a modest 0.06% gain as investors remain cautious ahead of a week marked by monetary policy decisions from several major central banks. The pair is supported by a broadly resilient Euro (EUR), while facing mixed flows on the Japanese Yen (JPY).
The US Dollar (USD) maintains a near-term bullish trend against the Swiss Franc (CHF), but the pair eased from 10-day highs of 0.7875 on Friday to levels close to 0.7860, as the President of the Swiss National Bank (SNB), Martin Schlegel, hinted at changes in the bank’s monetary policy.
Deutsche Bank analysts note that strong United States (US) Purchasing Managers' Index (PMI) data have reinforced perceptions of economic resilience and rising price pressures, leading markets to scale back expectations for Federal Reserve (Fed) rate cuts.
Silver prices (XAG/USD) fell on Friday, according to FXStreet data. Silver trades at $74.82 per troy ounce, down 0.82% from the $75.44 it cost on Thursday.
Rabobank’s Senior Macro Strategist Bas van Geffen notes that Oil prices have risen, with Brent futures around $106, as Middle East tensions and disruptions in the Strait of Hormuz intensify.
ING’s Chris Turner notes that Gulf tensions and broadening inflation pressures are keeping investors wary of short US Dollar (USD) positions. He highlights firm short-dated US yields as markets price a stagflationary oil shock and a potentially more hawkish Federal Reserve (Fed).
Nordea’s Chief Analyst Jan von Gerich expects the European Central Bank (ECB) to leave policy rates unchanged at the April meeting while keeping all options open for June. He anticipates a hawkish communication tone that underpins market expectations for a June hike.
Iran’s deputy president Esmaeil Saqab Esfahani has warned the United States (US) of “an eye for an eye” over oil strikes, according to the Mehr news agency, The Guardian reported. Esfahani threatened to attack the oil facilities of the countries from whose soil Iranian oil wells will be targeted.
Silver (XAG/USD) trades lower for the second consecutive day on Friday, weighed by the US Dollar’s strength, as investors lose their hopes of a swift end to the Middle East conflict.
United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann expect AUD/USD to remain in a consolidation phase after a brief dip to 0.7111 and close around 0.7130.
Swiss National Bank (SNB) Chairman Martin Schlegel said at the SNB's General Meeting during the European trading hours on Friday that the central bank has unrestricted room to maneuver on policy rate and made forex interventions.
Societe Generale analysts observe that USD/JPY has formed a small base above its 50‑day moving average after an earlier failed breakout.
Deutsche Bank strategists highlight that Brent Oil continues to climb as US-Iran tensions persist and the Strait of Hormuz remains effectively closed. Brent futures across the curve have pushed to multi‑week highs, with US gasoline and inflation swaps also rising.
The EUR/USD pair trades in a tight range around 1.1700 during the European trading session on Friday. The major currency pair consolidates while the US Dollar (USD) trades broadly firm, with investors shifting focus to central banks’ policy meetings next week.
Gold (XAU/USD) recovers slightly from a nearly two-week low, touched earlier this Friday, though it lacks follow-through and remains below the $4,700 mark through the first half of the European session.
ING’s Chris Turner says rising short-dated Eurozone yields on higher Oil and pass-through of input costs are not clearly supportive for EUR/USD. He argues the European Central Bank must get ahead of inflation expectations and that current real rate differentials are unsupportive.
Here is what you need to know on Friday, April 24:
The German IFO Institute Business Climate Index deteriorates at a faster-than-expected pace to 84.4 in April. The sentiment data was expected to arrive at 85.5, down from 86.3 in March, revised lower from 86.4.
BNY’s Bob Savage notes that Q1 S&P 500 earnings are strong but upside versus expectations is modest, with uneven Q2 and full‑year guidance. Sector leadership is concentrated in semiconductors, AI-linked names and parts of energy, while defense lags.
Crude prices are consolidating gains on Friday, following a three-day rally, as investors pare back hopes of an imminent peace deal between the US and Iran.
Commerzbank’s Tatha Ghose expects the Russian central bank to deliver another 50bp rate cut, though a pause is possible as inflation picks up and global price risks worsen.
Dow Jones futures pares its daily losses but remain in the negative territory, declining by 0.13%, trading above 49,400 during the European hours on Friday, ahead of the United States (US) regular opening.
United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann highlight that GBP/USD dropped sharply to 1.3448 before recovering, with momentum still only modestly negative. They see scope for a dip toward 1.3440, though a move to 1.3400 looks unlikely on current intraday momentum.
OCBC strategists Sim Moh Siong and Christopher Wong note that USD/JPY is again approaching 160 as the US Dollar (USD) benefits from safe-haven flows and Japanese authorities reiterate intervention readiness.
The USD/JPY pair enters a bullish consolidation phase on Friday and oscillates in a range below the 160.00 psychological mark through the early European session amid mixed cues. Nevertheless, spot prices seem poised to register gains for the first time in three weeks.
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