Trading news

The British Pound (GBP) trades firmer against the Japanese Yen (JPY) on Friday, as softer-than-expected Tokyo Consumer Price Index (CPI) data weigh on the Yen and revive doubts over the pace of policy normalisation by the Bank of Japan (BoJ). At the time of writing, GBP/JPY is trading around 212.16

Societe Generale's Kunal Kundu discusses the recently concluded EU-India Free Trade Agreement (FTA), highlighting its potential to create a free-trade zone covering nearly 2 billion people and a fourth of global GDP.

US Producer Prices rose 3.0% in December from a year earlier, according to the latest figures from the Bureau of Labour Statistics (BLS). The print came in above estimates (2.7%) and matched the 3.0% gain recorded in the previous month.

United States Producer Price Index ex Food & Energy (YoY) above forecasts (2.9%) in December: Actual (3.3%)

United States Producer Price Index ex Food & Energy (MoM) above expectations (0.2%) in December: Actual (0.7%)

United States Producer Price Index (MoM) above expectations (0.2%) in December: Actual (0.5%)

United States Producer Price Index (YoY) above expectations (2.7%) in December: Actual (3%)

Canada Gross Domestic Product (MoM) below expectations (0.1%) in November: Actual (0%)

Nordea's Macro & Markets report by Sara Midtgaard discusses the ongoing weakness of the US Dollar, driven by geopolitical factors and historical patterns. The report suggests that the current downturn could be long-lasting, with potential for a multi-year period of dollar weakness.

Preliminary inflation data released by Germany’s statistics office Destatis showed that the Consumer Price Index (CPI) rose 0.1% MoM in January, beating expectations for a flat reading and the previous figure of 0.0%.

TD Securities Global Strategy Team reports on the latest fund flows, highlighting a significant outflow from Global Equities, particularly from China, which recorded its largest weekly outflow on record.

Germany Consumer Price Index (YoY) below forecasts (2.2%) in January: Actual (2.1%)

Germany Consumer Price Index (MoM) came in at 0.1%, above expectations (0%) in January

Germany Harmonized Index of Consumer Prices (MoM) above forecasts (-0.2%) in January: Actual (-0.1%)

Germany Harmonized Index of Consumer Prices (YoY) came in at 2.1%, above expectations (2%) in January

Silver (XAG/USD) comes under intense selling pressure on Friday, posting a sharp correction after reaching a record high the previous day.

Bob Savage, Head of Markets Macro Strategy at BNY, notes a significant correction in Gold prices, driven by the nomination of Kevin Warsh as the next Fed chair, which has strengthened the U.S. Dollar. Gold fell sharply, with a 5.9% drop, while Silver and Platinum saw declines of over 10%.

The US Dollar maintains a moderate bid tone against the Japanese Yen on Friday, but has retreated from session highs at 154.40, and is trading at 153.90 at the time of writing, after Trump confirmed that former Federal Reserve (Fed) governor Kevin Warsh will replace the current bank Chairman Jerome

Brown Brothers Harriman (BBH) analysts note that Eurozone Q4 real GDP growth has exceeded expectations, positioning the European Central Bank favorably. Analysts suggest that the ECB can maintain its current rates for some time.

Gold (XAU/USD) comes under intense selling pressure on Friday, giving back all the gains registered earlier this week as extreme volatility triggers broad-based liquidation of leveraged positions. Meanwhile, traders also lock in profits at elevated price levels.