EUR/GBP stalls below 0.8690 amid mixed data from Germany

EUR/GBP treads water around 0.8675 after rejection at 0.8690 on Thursday.
Mixed German data has failed to provide support to the Euro on Friday.
The pair is on track for a 0.3% weekly decline and a 1.5% sell-off from mid-November highs.

Guillermo Alcala FXStreet

The Euro is trading flat in the area of 0.8675 on Friday’s early European session, halfway through the weekly range, following mixed macroeconomic data from Germany. From a wider perspective, the pair is on track for a 0.3% weekly loss and a 1.5% sell-off from mid-November highs above 0.8800.

German data released earlier on Friday revealed that Industrial Production grew 0.8% in November, following a 2.0% increase in the previous month, against market expectations of a 0.4% decline.

The trade surplus, on the other hand, narrowed to €13.1 billion in November, from €16.9 billion in October, below the €16.5 surplus anticipated by the market consensus. Exports dropped 2.5%, against market expectations of flat performance, reactivating concerns about the outlook for the Eurozone’s leading economy.

Later on Friday, Eurozone retail sales are expected to show a 0.1% uptick in November after a 0% reading in October. Year-on-year, retail consumption is expected to have accelerated to 1.6% from 1.5% in October.

In the UK, the economic calendar is thin this week. The Pound remains on the defensive following a downward revision of the S&P Global Services PMI on Monday. These figures have raised concerns about a softening economic growth in a context of high inflation, which will pose a headache for the Bank of England, and is keeping the pair from falling further.

Economic Indicator

Industrial Production n.s.a. w.d.a. (YoY)

The Industrial Production released by the Statistisches Bundesamt Deutschland measures outputs of the German factories and mines. Changes in industrial production are widely followed as a major indicator of strength in the manufacturing sector. A high reading is seen as positive (or bullish) for the EUR, whereas a low reading is seen as negative (or bearish).

Economic Indicator

Exports (MoM)

Exports of goods and services, released by Statistiches Bundesamt Deutschland, consist of transactions of goods ans services (sales, barter, gifts or grants) from residents to non-residents.

USD/JPY eyes August swing low, near 155.20 ahead of US NFP

USD/JPY retests the August monthly swing low during the Asian session on Friday as a more hawkish repricing of BoJ rate-hike bets and a suspected intervention continue to underpin the Japanese Yen. Meanwhile, the US Dollar is seen consolidating the previous day's heavy losses amid soft US bond yields, further weighing on the currency pair as traders keenly await the US NFP report.

AUD/USD consolidates above 0.7200; US NFP awaited

AUD/USD holds steady above 0.7200, near its highest level since mid-May, as bulls await the US NFP report for more cues on the Fed's policy path before placing fresh bets. Meanwhile, the recent decline in US bond yields keeps the US Dollar depressed near its lowest level in over a week and acts as a tailwind for the Aussie amid the RBA's hawkish tilt.

Gold tumbles as blockbuster US NFP lift US Dollar, Treasury yields

Gold (XAU/USD) falls sharply on Friday, snapping a two-day recovery after the US Nonfarm Payrolls (NFP) report surprised strongly to the upside. The metal briefly climbed above $4,500 on Thursday, gaining nearly 2%, but has since erased a large part of that advance.

Crypto’s $638 million buyback boom may not be as bullish as it looks

Decentralized Finance (DeFi) protocols reportedly spent $638 million to buy back their native tokens in August, up 17% from a year earlier. On the surface, the buyback trend suggests the cryptocurrency industry is maturing fast, adopting one of Wall Street’s oldest tools to bolster valuations and distribute revenue. The headline becomes less impressive once the number is opened up.

Why hawkish Bank of Japan expectations aren't enough to sustain the Japanese Yen rally

The Japanese Yen (JPY) experienced a sudden burst higher after falling back below the 160.00 psychological mark against the US Dollar (USD) earlier this week amid a more hawkish repricing of Bank of Japan (BoJ) rate hike expectations.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.