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Following Thursday's sharp decline, GBP/USD clings to small gains above 1.3300 in the European session Friday, supported by the upbeat UK Retail Sales and July PMI data. Nevertheless, the pair's upside remains capped as investors cling to a cautious stance amid a further escalation of tensions in the Middle East. The US economic calendar will feature preliminary July PMI data later in the day.
EUR/USD loses its traction and trades below 1.1400 on Friday, following a recovery attempt on upbeat Eurozone and German PMI data earlier in the day. The risk-averse market atmosphere helps the US Dollar (USD) hold its ground as market focus shifts to preliminary July PMI data from the US.
Gold builds on its modest intraday bounce and climbs back above the $4,050 level, hitting a fresh daily high amid a modest US Dollar pullback. The fundamental backdrop, however, warrants some caution before confirming that the pullback from an over two-week high, touched on Wednesday, has run its course and positioning for any meaningful upside.
Ethereum is hovering slightly below the $1,900 level, down 3% on Thursday following a slight expansion in derivatives interest. The top altcoin's open interest has increased to 14.60 million ETH, marking a 600K ETH increase over the past two days and its highest level since June 7.
The broader cryptocurrency market faces headwinds with rising tensions between the US and Iran, pushing Bitcoin down to its 50-day Exponential Moving Average support around $65,135 on Friday. Under pressure, Pi Network and Sky emerge as the worst-performing crypto assets over the last 24 hours.
