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Japanese Yen struggles amid political uncertainty and risk-on mood; downside seems limited
The Japanese Yen (JPY) struggles to capitalize on the overnight bounce from a three-day low against a broadly weaker US Dollar (USD) and ticks lower during the Asian session on Friday.
NZD/USD loses ground below 0.5900 on renewed US Dollar demand
The NZD/USD pair loses ground to near 0.5870 during the Asian trading hours on Friday. The pair edges lower on a modest rebound in the US Dollar (USD) and deflationary pressures in China.
USD/CHF languishes around 0.7960 with US Consumer Sentiment on focus
The US Dollar remains trading within a tight range, with upside attempts limited at 0.7980, following a rejection from the 0.8000 psychological area on Thursday. Higher Jobless Claims and moderate consumer inflation figures cemented hopes of Fed cuts and undermined speculative demand for the USD.
Michigan Consumer Sentiment Index expected to deteriorate further in September
The University of Michigan (UoM) is expected to release the preliminary figures of its monthly Consumer Confidence Index for September on Friday.
USD/JPY: A narrower range of 146.20/148.50 may be enough to contain the price - UOB Group
US Dollar (USD) is likely to trade in a range of 146.75/147.65. In the longer run, a narrower range of 146.20/148.50 is likely enough to contain the price movements for now, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Australian Dollar climbs as prospects for a larger Fed rate cut increase
The Australian Dollar (AUD) advances against the US Dollar (USD) on Friday, extending its gains for the third successive session.
US Dollar Index (DXY) recovery loses steam at 97.80
The US Dollar bounced up from lows earlier on Friday, but upside attempts remain limited below the 98.00 level so far, which keeps price action trapped within the previous day's range, and maintains the broader bearish trend intact.
NZD/USD: Unlikely to be able to break above 0.5990 - UOB Group
There is room for New Zealand Dollar (NZD) to rise further, but it is unlikely to be able to break above 0.5990 today. In the longer run, NZD could break above 0.5990; the scope for further advance may be limited, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
USD/JPY steady in tight range - BBH
USD/JPY trades mid-range after the US Treasury and Japan's Finance Ministry reaffirmed that exchange rates should be market determined. The rare joint statement, the first since 2022 to mention FX, underscored opposition to competitive devaluations, BBH FX analysts report.
AUD/USD: Likely to strengthen further but is unlikely to reach 0.6700 - UOB Group
Australian Dollar (AUD) is likely to strengthen further but is unlikely to reach 0.6700. In the longer run, the price action continues to suggest a higher AUD; the next level to watch is 0.6700, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
EUR/USD holds post-ECB gains - BBH
EUR/USD is holding on to most of its post-ECB meeting gains. The ECB left the policy rate steady at 2.00% for a third consecutive meeting (widely expected) and signaled the easing cycle is over. The decision to stand pat was unanimous, BBH FX analysts report.
GBP/USD: Set to test and possibly break above 1.3595 - UOB Group
Pound Sterling (GBP) could test and possibly break above 1.3595, but it is unlikely to be able to maintain a foothold above this level.
GBP shrugs off weak GDP - BBH
Sterling ignored disappointing UK July GDP data, but a weak growth trajectory paired with sticky services inflation leaves the BOE constrained. With policy room limited, GBP faces headwinds, particularly against the euro, BBH FX analysts report.
EUR/USD has scope to test 1.1760 - UOB Group
Strong rebound in Euro (EUR) has scope to test 1.1760; the major resistance at 1.1790 is not expected to come under threat. In the longer run, EUR could rise but any advance is likely part of a higher range of 1.1650/1.1790, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
PBOC sets USD/CNY reference rate at 7.1019 vs. 7.1034 previous
On Friday, the People's Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead at 7.1019 compared to the previous day's fix of 7.1034 and 7.1081 Reuters estimate.
USD steadies as stagflation fears mount - BBH
US Dollar (USD) recovered some of yesterday's loss, S&P 500 futures are down after the underlying index hit a record high yesterday, and Treasury yields are up slightly. Markets are digesting ECB guidance and US CPI data, BBH FX analysts report.
USD: Three cuts validated - ING
Thursday's US CPI report showed slightly hotter than expected headline inflation (0.4% MoM), while the more closely monitored core rate rose by 0.3% MoM in line with consensus. What matters the most is the limited tariff impact, ING's FX analyst Francesco Pesole notes.
China says not happy with super-high tariffs Mexico has placed on it now
China's Commerce Ministry said on Friday that the officials are not happy with super-high tariffs that Mexico has placed on China now.
RUB: Another 200bp cut expected today - Commerzbank
The Russian central bank (CBR) meets today for its rate decision: the consensus had originally been split between a 100bp and a 200bp rate cut scenario - but, with more economic weakness and softening of inflation reported, more views have shifted towards the 200bp (down to 16%) option and bets have
EUR: Lagarde doubles down on 'good place' - ING
Thursday's ECB meeting proved more eventful than we had anticipated, ING's FX analyst Francesco Pesole notes.
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