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GBP/USD trades with marked gains on Friday, now giving away some gains following an earlier surpass of the key 1.3500 yardstick. Indeed, Cable gathers fresh steam amid the strong offered stance in the Greenback, all after US NFP badly missed expectations in July.
EUR/USD reverses Thursday’s decline and trades with solid gains in the 1.1560 region, or two-month peaks, on Friday. The pair’s firm performance comes in a context of a sharp correction in the US Dollar as investors continue to assess disheartening US NFP readings.
Gold is seen consolidating Friday's post-NFP rally and trading just below $4,350 at the start of a new week, close to its highest level since June 17. Meanwhile, weak US jobs data tempered Fed rate hike bets, which keeps the US Dollar on the defensive and acts as a tailwind for the non-yielding bullion. Meanwhile, the focus now shifts to this week's US inflation figures as traders await developments surrounding the Middle East crisis.
US inflation data to guide Fed rate hike expectations. A hawkish BoJ summary of opinions could support the Yen. RBA could still sound hawkish amid sticky inflation. UK GDP and activity figures to shape sterling sentiment.
The week in one sentence: a historic Yen short unwind led to a broader recovery in FX positioning, while Gold strengthened with price confirmation, and renewed selling in WTI and Coffee reinforced commodity weakness. The Japanese Yen delivered the report's dominant move. Net positioning improved by nearly 118K contracts, the largest weekly increase since at least 2011.
