Here’s what you need to know on Friday, October 25:
The US dollar (USD) remains immune to attacks from its main rivals early Friday after struggling to find demand on Thursday. During European trading hours, investors will pay particular attention to the results of IFO trader sentiment surveys from Germany. Later in the day, the U.S. economic calendar will feature September robust goods orders and the final revision of the University of Michigan’s consumer sentiment index for October. Additionally, Statistics Canada will release retail sales data for September.
The improving risk sentiment made it tough for the U.S. dollar to extend its weekly gain on Thursday. As Wall Street’s major indexes ended the day higher, the USD index lost 0.4%, recording its biggest one-day decline in a month. On Friday morning in Europe, the USD index remains stable above 104.00, while futures contracts for American stock indices record slight increases that day.
PRICE in US dollars this week
The table below shows the percentage change in the United States Dollar (USD) against the major currencies traded this week. The US dollar was strongest against the Japanese yen.
| USD | EUR | GBP | JPY | BOOR | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.46% | 0.68% | 1.60% | 0.29% | 1.20% | 1.08% | 0.18% | |
| EUR | -0.46% | 0.16% | 1.04% | -0.11% | 0.71% | 0.51% | -0.36% | |
| GBP | -0.68% | -0.16% | 0.89% | -0.39% | 0.53% | 0.39% | -0.55% | |
| JPY | -1.60% | -1.04% | -0.89% | -1.29% | -0.39% | -0.45% | -1.46% | |
| BOOR | -0.29% | 0.11% | 0.39% | 1.29% | 0.81% | 0.85% | -0.24% | |
| AUD | -1.20% | -0.71% | -0.53% | 0.39% | -0.81% | -0.05% | -1.08% | |
| NZD | -1.08% | -0.51% | -0.39% | 0.45% | -0.85% | 0.05% | -0.94% | |
| CHF | -0.18% | 0.36% | 0.55% | 1.46% | 0.24% | 1.08% | 0.94% |
The heat map shows the percentage changes of the major currencies relative to each other. The base currency is selected from the left column and the quote currency from the top row. For example, if you select the US dollar from the left column and move along the horizontal line to the Japanese yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
After reaching the lowest level since early July at 1.0760 on Wednesday, EUR/USD they recovered their losses on Thursday and closed above 1.0800. The pair is looking to build on Thursday’s gains and is trading a narrow channel at around 1.0820 to start the European session.
GBP/USD gained over 0.4% on Thursday and made up for Wednesday’s losses. The pair, however, entered a consolidation phase before testing 1.3000 and was last seen moving sideways near 1.2970.
Despite widespread USD weakness, USD/CAD managed to post modest gains on Thursday as the Canadian dollar failed to attract buyers following the Bank of Canada’s (BoC) decision to cut key interest rates by 50 basis points earlier in the week. The pair has been moving up and down in a very tight band around 1.3850 early Friday.
After a three-day rally USD/JPY revised down on Thursday. Commenting on developments in currency markets, “the recent declines in the yen are partly due to optimism about the U.S. economic outlook,” Bank of Japan (BoJ) Governor Kazuo Ueda said slow Thursday. Japan’s Economy Minister Ryosei Akazawa said on Friday that a tender yen has had a mixed impact on the economy, reiterating that it is vital for currencies to move in a stable manner that reflects fundamentals. Meanwhile, data from Japan showed Tokyo’s consumer price index (CPI) rose 1.8% year-on-year in October, a slower pace than the 2.1% gain recorded in September.
Gold regained traction on Thursday and rose 0.75% on the day, supported by a decline in US Treasury yields. XAU/USD remains relatively peaceful and is trading below $2,750 in the European morning on Friday.
