JPY is underperforming on political developments – Scotiabank

EUR/USD is back in the red, struggling below 1.1550 in the early European session on Friday. The pair exhibits modest weakness as the US Dollar recovers ground amid broad risk aversion, led by global tech sell-off, weak US jobs data and extended government shutdown. ECB-speak and US Michigan Consumer Sentiment eyed. 

GBP/USD keeps the red near 1.3100 in European trading on Friday, having risen 1% over the past two sessions. The pair loses recovery momentum as the Pound Sterling struggles following the Bank of England’s dovish hold in November. The US Dollar rebound also adds to the weight on the major. 

Gold reclaims the $4,000 psychological mark heading into the European session on Friday, though it remains below the overnight swing high amid mixed cues. Concerns about the economic fallout from a prolonged US government shutdown, along with the uncertainty over the legality of US President Donald Trump's tariffs, temper investors' appetite for riskier assets.

Dogecoin trades above $0.1600 on Friday, stabilizing after a rough start to the week. Eric Balchunas, a Bloomberg ETF analyst, shared that the Bitwise Dogecoin spot Exchange Traded Fund could launch 20 days after the 8(a) form filed on Thursday. 

Risk appetite has not fully enjoyed the treats of a Fed rate cut, strong earnings and trade peace. Fedspeak, the US Supreme Court and US data could challenge the Dollar’s current strength. Aussie and Pound are on divergent paths as respective central banks meet next week.

Dogecoin (DOGE) trades above $0.1600 at the time of writing on Friday, stabilizing after a rough start to the week. Eric Balchunas, a Bloomberg ETF analyst, shared that the Bitwise Dogecoin spot Exchange Traded Fund (ETF) could launch 20 days after the 8(a) form filed on Thursday.