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The GBP/USD pair sticks to a positive bias for the second straight day, albeit it remains below the previous day's swing high and trades just below the 1.3200 mark during the Asian session on Friday. Furthermore, the fundamental backdrop warrants caution before positioning for any meaningful recovery from November 2025 lows, around the 1.3140 region, touched on Wednesday.
The EUR/USD pair loses ground to around 1.1365 during the early Asian trading hours on Friday. The major remains near a 13-month low as market expectations for US interest rate hikes have risen. Traders brace for the release of the Michigan Consumer Sentiment Index report, which will be released later on Friday.
Gold struggles to build on the overnight bounce from its lowest level since November 2025 as geopolitical risks stemming from an attack on a cargo vessel in the Strait of Hormuz support the US Dollar. Meanwhile, mostly in-line US inflation data eased bets for Fed rate hikes this year, capping the USD and helping the non-yielding bullion to hold above $4,000 during the Asian session. Nevertheless, the commodity remains on track to record losses for the fourth consecutive week.
The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.
