A newswire report said more ECB bond buying after March is a done deal but more broadly the US dollar was solid. GBP was the top performer while the yen lagged. New Zealand trade balance is up next. There are 4 Premium trades in equity indices currently open. The rest are in FX and commodities.
A Reuters report citing central bank sources said the ECB will continue purchases after the March deadline and tweak the rules in order to do so. Whether QE remains at 80 billion euros per month or slows down depends on the interim economic data, the report said.The euro hardly moved on the report and that's a clear indication that the market has priced in a dovish leaning wait-and-see from Draghi. On the day the euro finished slightly higher.
The pound gained for a second day in a row and gained 50 pips to close the gap from Wednesday's sharp decline.
The pound rose despite a theme of general US dollar strength that was driven by upbeat data. The Sept advance goods trade balance was a deficit of $56.1B compared to $60.5B expected; wholesale inventories were up 0.2% compared to 0.1% expected; and the Markit services PMI was at 54.8 vs 52.5 expected.
Those numbers all gave the dollar a modest lift.
Elsewhere, yet another bullish US oil inventory report sent WTI crude immediately 80-cents higher but it faded by the end of the day in a sign that the climb higher in oil might be tired.
Overall, ranges were limited on the day.
Looking ahead, the economic calendar tapers off after New Zealand trade balance early. Exports are forecast at $3.53B and imports at $4.68B. The data is due at 2350 GMT.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
GBP/USD remains on the defensive below 1.2450 ahead of UK Retail Sales data
GBP/USD remains on the defensive near 1.2430 during the early Asian session on Friday. The downtick of the major pair is backed by the stronger US Dollar as the strong US economic data and hawkish remarks from the Fed officials have triggered the speculation that the US central bank will delay interest rate cuts to September.
EUR/USD extends its downside below 1.0650 on hawkish Fed remarks
The EUR/USD extends its downside around 1.0640 after retreating from weekly peaks of 1.0690 on Friday. The hawkish comments from Federal Reserve officials provide some support to the US Dollar.
Gold: Middle East war fears spark fresh XAU/USD rally, will it sustain?
Gold price is trading close to $2,400 early Friday, reversing from a fresh five-day high reached at $2,418 earlier in the Asian session. Despite the pullback, Gold price remains on track to book the fifth weekly gain in a row.
Bitcoin Price Outlook: All eyes on BTC as CNN calls halving the ‘World Cup for Bitcoin’
Bitcoin price remains the focus of traders and investors ahead of the halving, which is an important event expected to kick off the next bull market. Amid conflicting forecasts from analysts, an international media site has lauded the halving and what it means for the industry.
Israel vs. Iran: Fear of escalation grips risk markets
Recent reports of an Israeli aerial bombardment targeting a key nuclear facility in central Isfahan have sparked a significant shift out of risk assets and into safe-haven investments.