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GBP/USD clings to moderate gains and holds above 1.3400 in the European session on Friday. The British Pound gains amid optimism on the UK government leadership transition and Bank of England rate hike bets. Meanwhile, the US Dollar loses ground on Middle East de-escalation and receding Fed rate hike expectations.
EUR/USD continues to edge higher in the European session on Friday and trades near 1.1450. The US Dollar (USD) struggles to find demand as the US says they are committed to finding a diplomatic solution to end the conflict in the Middle East. Later in the day, the Federal Reserve will publish its Semiannual Monetary Policy Report.
Gold touches a fresh low during the first half of the European session, with bears looking to extend the intraday descent further below the $4,100 mark. As investors digest Wednesday's less hawkish FOMC Minutes, the US Dollar bounces off over a one-week low, supported by prospects of a US Federal Reserve interest rate hike in 2026 and geopolitical uncertainties.
Markets are anticipating a fairly stable report when Statistics Canada releases its Labour Force Survey on Friday. While the Net Change in Employment is predicted to rise by 10K in June, adding to the 87.8K gain in May, the Unemployment Rate is forecast to stay at 6.6%.
Markets opened July with a December hike as the base case and spent five trading sessions unlearning and relearning it. A 57K payrolls print bled the tightening bets out of the strip; a re-shut Strait of Hormuz is pushing them back in. Wednesday's minutes from the June Federal Open Market Committee meeting landed mid-round-trip, describing a world that had already stopped existing.
Markets opened July with a December hike as the base case and spent five trading sessions unlearning and relearning it. A 57K payrolls print bled the tightening bets out of the strip; a re-shut Strait of Hormuz is pushing them back in. Wednesday's minutes from the June FOMC meeting landed mid-round-trip, describing a world that had already stopped existing.
