This came as EUR/USD broke above the July 15th high at 1.1036, benefitting from better than expected German IFO Business Climate (108.0 vs. Exp. 107.2). Elsewhere, JPY strengthened amid a risk-off tone in the region as Asian indices declined to see USD/JPY trade around the 123.00 handle, a level that has not been broken since July 23rd.
Looking ahead, tomorrow sees the advanced reading of UK Q2 GDP, with Q2 expected to outperform Q1 (Exp. 0.7%), while a strong reading could heighten calls for a rate hike around the turn of the year given the recent relatively hawkish rhetoric from the BoE. However it is worth noting the dovish rhetoric from Haldane over the weekend, suggesting there is `no rush` to raise rates. Elsewhere tomorrow also sees US composite and Services PMI scheduled at 1445BST/0845CDT
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EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.