Trading news

The US Dollar Index (DXY) is losing momentum near the 98.50 price zone and continues drifting lower from recent highs as markets unwind part of the recent US Dollar (USD) rally despite still strong United States (US) data and ongoing Middle East tensions.

Gold (XAU/USD) price recovers some ground on Friday, extending its gains above $4,700 as market sentiment remains upbeat amid headlines from Iran and the US pointing to a resumption of second-round talks aimed at ending the conflict. At the time of writing XAU/USD trades at $4,726, up 0.47%.

The New Zealand Dollar (NZD) gains traction against the US Dollar (USD) on Friday as the Greenback weakens amid renewed hopes for US–Iran talks after stalled negotiations.

Commerzbank’s Chief Economist Dr. Jörg Krämer argues that the sharp fall in the Ifo Business Climate Index underlines how severely the energy price shock is weighing on the German economy.

Iran's Foreign Minister Abbas Araghchi landed in Islamabad on Friday evening to open the long-delayed second round of talks with the US, and special envoy Steve Witkoff and senior adviser Jared Kushner are due in on Saturday morning.

Standard Chartered economists Dan Pan and Steve Englander assess the impact of the United States (US) Supreme Court’s IEEPA ruling on US tariff revenue. They note that tariff income has fallen but remains well above pre-Liberation Day levels.

United States Baker Hughes US Oil Rig Count down to 407 from previous 410

MUFG’s Derek Halpenny argues that the ongoing United States (US) blockade in the Strait of Hormuz is building a significant inflation shock for the US and globally, with Oil and input costs surging.

West Texas Intermediate (WTI) US Oil trades around $92.55 at the time of writing on Friday, down 3.28% on the day, marking a notable pullback after reaching recent highs earlier in the week.

TD Securities analysts expect a broadly neutral near-term impact on the Canadian Dollar (CAD) from a more balanced Bank of Canada (BoC) tone.

Dow Jones Industrial Average (DJIA) futures are trading broadly flat in the early afternoon GMT on Friday, holding above 49,100 after a choppy session that saw prices swing between 48,900 and 49,500.

EUR/USD rises on Friday, snapping a three-day losing streak as prospects of renewed US-Iran peace talks lift market sentiment and weigh on the US Dollar (USD). At the time of writing, the pair is trading around 1.1715, up 0.27% on the day, recovering from two-week lows.

GBP/USD advances on Friday as improved risk appetite weighed on the US Dollar’s safety appeal amid growing speculation that a second round of talks between the US and Iran looms. A three-week extension of the ceasefire between Israel and Lebanon added to traders’ optimism.

EUR/GBP trades in a tight range on Friday, fluctuating between minor gains and losses as markets show a muted reaction to the latest economic data, with traders remaining focused on geopolitical developments surrounding the US and Iran.

Nomura’s George Buckley and team expect the Bank of England (BoE) to leave Bank Rate unchanged at 3.75% next week, with a likely 8-1 vote and Huw Pill as the sole hawk.

AUD/USD is pushing higher toward the 0.7140 area on Friday, as the US Dollar (USD) loses momentum despite ongoing Middle East noise, allowing risk-sensitive currencies to recover.

Scotiabank strategists Shaun Osborne and Eric Theoret report that weaker German IFO data, weighed down by Gulf tensions and energy price concerns, has softened the outlook for German growth but had little immediate impact on the Euro.

USD/CAD trades around 1.3685 on Friday, down 0.12% on the day, as the pullback in the US Dollar (USD) dominates price action despite a still fragile geopolitical environment.

DBS Group Research’s Chang Wei Liang says Japan’s March Consumer Price Index (CPI) data show underlying price pressures, with headline and core-core inflation edging higher and the Bank of Japan (BoJ) reportedly set to raise its inflation forecast.

TD Securities strategists expect the Bank of Canada’s (BoC) April Monetary Policy Report (MPR) to embed significantly higher Oil assumptions, with Brent at USD 90 and West Texas Intermediate (WTI) at USD 85, versus a prior USD 55 WTI baseline.