Hello traders, welcome to Friday morning.
We’re closing out what has been one of the busiest weeks of the year, and Thursday brought another wave of action. The spotlight yesterday was firmly on the antipodeans: New Zealand GDP collapsed to -0.9%, much worse than expected, sending the NZD tumbling. Australia didn’t offer any relief, as job data disappointed and added pressure on the AUD. Meanwhile, the Bank of England kept rates unchanged at 4%, but the pound struggled as the market didn’t buy into the policy statement.
Across the Atlantic, US unemployment claims dropped while Philly Fed Manufacturing IndexI beat expectations at 23.2. That mix added to Thursday’s volatility but in the end, the US dollar extended its post-FOMC strength, securing its spot as the week’s clear winner.
On the commodities front, the picture was rough: oil reversed sharply lower, erasing early-week gains and approaching weekly lows. Metals also pulled back, with both gold and silver giving up some ground after their strong run.
Now into Friday morning, the focus shifts again. Overnight, the Bank of Japan kept rates steady, but its statement carried a hawkish tone, boosting the yen and knocking the Nikkei sharply lower, erasing Thursday’s upswing. In Europe, we already saw UK retail sales beating expectations at 0.6%, but the pound remains weak — buyers aren’t convinced.
As the European session kicks off, we’re entering the day with yen strength, ongoing pressure on antipodean currencies, and continued resilience of the dollar. Indices, especially in the US, are still hovering near all-time highs, but European equities remain cautious, reflecting yesterday’s choppy trade.
Later today, attention will shift to Canadian retail sales.. That will be the final test before traders close the books on a week dominated by central banks and a resurgent dollar.