We’re stepping into the final trading day of the week following a volatile and headline-driven Thursday. While much of the week was shaped by central banks and geopolitical noise, Thursday brought a dense mix of macro data and subdued liquidity—with U.S. markets closed for a public holiday.
The day started early with mixed signals from the Antipodes. New Zealand delivered stronger-than-expected GDP, while Australia disappointed on the job front. Despite the divergence in data, both the New Zealand and Australian dollars traded lower in tandem, likely weighed down by broader dollar strength and cautious sentiment in Asia.
The European session brought two key central bank events. First, the Swiss National Bank cut rates by 25 basis points as expected. The move wasn’t a huge surprise, but it confirmed a dovish stance. Later, the Bank of England held rates steady at 4.25%. There was little drama from the BoE this time around, and the pound drifted modestly lower, especially after soft UK retail sales expectations for Friday further soured sentiment.
With U.S. traders off for the day, liquidity thinned significantly into the latter half of the session. Volatility on major pairs and indices subsided, and commodities followed suit—at least for a moment.
Oil continued its upward grind, although the pace has slowed. After climbing strongly earlier in the week on Middle East tensions, Thursday’s session showed signs of consolidation. Still, the bullish structure remains intact, and oil sits solidly in green territory for the week.
Gold, on the other hand, extended its recent pullback. Despite lingering geopolitical tensions, gold struggled under the weight of a stronger U.S. dollar. That trend is continuing Friday morning, with the yellow metal under modest pressure. Silver and copper followed the same pattern, posting red sessions on Thursday and opening Friday with slight declines.
Friday morning opens with a broadly positive tone in equities. European indices gapped higher at the open, and U.S. futures are pointing to a green start as American traders return. Nasdaq is especially strong, continuing its bounce after defending the key support zone around 21,500 earlier this week. The tech-heavy index is leading gains, and the bullish sentiment there is dragging broader risk appetite higher.
On the currency front, the dollar remains firm following Wednesday’s FOMC message and a week of mostly soft data from global peers. The yen is mildly firmer this morning after some cautious comments from Bank of Japan Governor Ueda, but the tone remains defensive. Scandinavian currencies and the pound continue to underperform, while euro is flatlining.
In short, Friday begins on a cautiously positive note. Risk appetite is ticking higher despite recent geopolitical noise, and equity markets are leading the way. We'll watch to see if this tone holds into the weekend or if traders look to book profits after a choppy and headline-heavy week.