The US Dollar (USD) extended its decline on Friday, with the USD Index slipping below 106.00, marking its lowest level in over two weeks. A lack of significant data releases on the US economic calendar and early market closures due to the Thanksgiving holiday contributed to the pressure on the greenback. Meanwhile, investors are turning their attention to Eurozone inflation data and Canada’s third-quarter GDP figures for further market cues.
US stock index futures showed strength early Friday, while the benchmark 10-year Treasury yield continued its downward trend, approaching 4.2%. These developments have dampened demand for the USD, adding to its struggles.
In Asia, Japan’s Tokyo Consumer Price Index surged by 2.6% year-on-year in November, a notable increase from October’s 1.8%. However, Japan’s unemployment rate ticked up to 2.5%, and industrial production contracted by 2.6% annually. The USD/JPY pair fell sharply, trading near 150.00, its lowest level since late October, reflecting a 1% daily decline.
Economic Calendar 29-11-2024
In Europe, the EUR/USD pair capitalized on the USD’s weakness, climbing toward 1.0600 during Friday’s morning session. German inflation data released Thursday showed a 0.2% monthly decline in the Consumer Price Index for November, in line with market expectations. Similarly, GBP/USD maintained positive momentum, trading above 1.2700 and positioning itself to break an eight-week losing streak.
Across the Atlantic, Canada’s GDP is expected to grow by 1% annually in the third quarter, following a 2.1% expansion in Q2. The USD/CAD pair remained under pressure, trading below 1.4000 early Friday after back-to-back declines earlier in the week.
Gold prices surged on Friday, benefiting from declining US Treasury yields. Spot gold climbed above $2,660 in the European session, gaining 1% on the day as it regained bullish momentum.
Investors will closely monitor Eurozone inflation trends and Canada’s GDP data for further guidance as the trading week concludes.
Leave a Reply