EUR/GBP edges up above 0.8700 on shaky markets

The Euro stands above 0.8700 against the Pound but is on track for a moderate weekly decline.
The pair trades in range amid a frail market sentiment as Iran's ceasefire staggers.
German inflation data endorses the view of an upcoming ECB rate hike.

Guillermo Alcala FXStreet

The Euro (EUR) holds moderate gains against the British Pound (GBP) on Friday. The pair edges up above 0.8700 at the European session’s opening times, yet on track to a minor weekly decline, with both currencies trimming gains against the safe-haven US Dollar (USD) as Iran’s ceasefire staggers.

Tehran has threatened to pull out of the peace process after massive attacks from Israel killed more than 300 people in Lebanon. US President Donald Trump, on the other hand, has complained about Iran’s poor handling of the traffic in the Strait of Hormuz, warning on Truth Social that "That is not the agreement we have".

Data released by the Hormuz Trail Monitor shows that only seven vessels have crossed the critical waterway in the last 24 hours. This is about a 5% of the 140 ships that would sail through the strait in an average day before the war, while Iranian authorities are reportedly charging fees for Oil tankers.

German Inflationary pressures soar in March

In the economic docket, the German Harmonized Index of Consumer Prices (HICP) confirmed preliminary figures showing that inflation accelerated 1.2% in March and 2.8% year on year, from 0.4% and 2.0% respectively, boosted by higher energy prices amid the war in the Middle East.

These figures fuel market expectations that the European Central Bank (ECB) will be forced to hike rates in the coming months, and maybe as soon as in April. The Bank of England (BoE), on the contrary, is taking a “wait and see " stance and is not expected to tighten its monetary policy anytime soon. This is providing some competitive advantage to the Euro.

(This story was corrected on April 10 at 07;50 GMT to say that the German year-on-year HICP accelerated to 2.8% in March from 2.0% in February, instead of the 2.7% and 1.9% respective figures previously reported.)

Economic Indicator

Harmonized Index of Consumer Prices (MoM)

The Harmonized Index of Consumer Prices (HICP), released by the German statistics office Destatis on a monthly basis, is an index of inflation based on a statistical methodology that has been harmonized across all European Union (EU) member states to facilitate comparisons. The MoM figure compares the prices of goods in the reference month to the previous month. Generally, a high reading is bullish for the Euro (EUR), while a low reading is bearish.

Economic Indicator

Harmonized Index of Consumer Prices (YoY)

The Harmonized Index of Consumer Prices (HICP), released by the German statistics office Destatis on a monthly basis, is an index of inflation based on a statistical methodology that has been harmonized across all European Union (EU) member states to facilitate comparisons. The YoY reading compares prices in the reference month to a year earlier. Generally, a high reading is bullish for the Euro (EUR), while a low reading is bearish.

AUD/USD sticks to positive bias above 0.7100; lacks bullish conviction

AUD/USD trades with a positive bias for the second straight day, holding above 0.7100 in the Asian session on Friday as softer US bond yields keep US Dollar bulls on the back foot. Furthermore, hawkish RBA Governor Bullock's comments boost rate hike bets and support the Aussie. However, the Fed's hawkish outlook, along with geopolitical uncertainties, limits USD losses and caps the pair.

USD/JPY approaches 158.00 as Japanese Yen resumes decline

USD/JPY is resuming its upside in the European session on Friday, refreshing two-week highs and nearing 158.00. The Japanese Yen extends losses, despite the Bank of Japan's (BoJ) expected rate hike to 1.25% and hawkish Governor Ueda's comments, as two surprise dissents against the rate hike weigh on it.

Gold keeps the bid tone in place; still below $4,400

Gold adds to the optimism seen in the second half of the week, trading with decent gains just below the $4,400 mark per troy ounce on Friday. The precious metal’s advance finds traction in declining crude oil prices and fresh selling pressure on the US Dollar.

Why altcoin season isn't coming back — and what stole its capital

If, after two years of being frozen in ice, Katara and Sokka woke you up to the crypto market, it would seem like 100 years have passed. With Bitcoin soaring to record highs just over a year ago, everyone expected a routine altcoin season, where investors take profits from the top crypto to chase higher returns in altcoins.

BoJ Recap: Not as hawkish as expected

The BoJ raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks. Governor Kazuo Ueda said the policy phase had changed.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.