Gold (XAU/USD) is poised to finish the week with losses of nearly 4.50%, yet it is up 0.14% on Friday as the US Dollar (USD) caps its advance, following a hot US inflation report on the producer side. At the time of writing, XAU/USD trades at $3,879, near 13-month lows.
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Silver (XAG/USD) slides back below $50 on Friday and is on track for a weekly loss of more than 5% as traders bet on more aggressive Federal Reserve (Fed) tightening in the months ahead.
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The Swiss Franc (CHF) is the worst-performing major currency this week as rising expectations of further interest rate hikes in the US and elsewhere make the lower-yielding Franc less attractive.
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San Francisco Federal Reserve (Fed) President Mary C. Daly said on Friday that the US economy is good, but the "key problem" is inflation, adding that the “bias is that rates need to go up.”
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The President of the Bundesbank, Joachim Nagel, who is also a member of the European Central Bank (ECB) Governing Council, hinted that the ECB would need to raise interest rates again.
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AUD/USD extends its decline on Friday, trading around 0.6775, down 0.43% on the day at the time of writing. The Australian Dollar (AUD) remains under pressure against the US Dollar (USD), as rising US Treasury yields reduce investors' appetite for risk-sensitive currencies.
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Boston Federal Reserve (Fed) President Susan Collins said that “inflation is too high and appears to be broadening,” echoing earlier comments by Chicago’s Fed President Austan Goolsbee.
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The British Pound (GBP) holds steady against the US Dollar on Friday, yet it’s poised to end the week with weekly losses of nearly 0.90%, trading at around 1.3230 after the recent US producer inflation report reached its highest level since November 2022.
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USD/CAD pauses a three-day winning streak on Friday as a rebound in Oil prices helps the Canadian Dollar (CAD) outperform its major peers. The pair’s downside remains cushioned by a broadly stronger US Dollar (USD), supported by an increasingly hawkish Federal Reserve (Fed) outlook.
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EUR/USD remains on the back foot on Friday as the latest US producer inflation data draws little market reaction. The pair hovers near its lowest level since May 2025 as bets on further Federal Reserve (Fed) tightening continue to support the US Dollar (USD).
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Chicago Federal Reserve (Fed) President Austan Goolsbee said inflation has broadened into categories “where prices are not being driven by energy,” adding that the Fed “definitely has work to do” to retain its credibility.
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Producer inflation in the United States (US), as measured by the change in the Producer Price Index (PPI), climbed to 6.5% in October from 6.3% in September, the US Bureau of Labor Statistics (BLS) reported on Friday. This print came in slightly below the market expectation of 6.6%.
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EUR/GBP pares back some of its earlier gains on Friday as mixed Eurozone data temper the Euro’s (EUR) advance against the British Pound (GBP). The pair is still slightly higher on the day and remains stuck in a tight range near its April 2025 lows.
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The Japanese Yen (JPY) remains under sustained pressure near multi-month lows as USD/JPY pushes above the 160.00 level for a second consecutive session, prompting official warnings from Japanese Finance Minister Katayama regarding one-sided and rapid foreign exchange moves.
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The New Zealand Dollar (NZD) heads lower for the fourth consecutive day against the US Dollar (USD) on Friday, as speculation of a jumbo rate hike by the Federal Reserve (Fed) has increased the monetary divergence with the Reserve Bank of New Zealand (RBNZ).
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Brown Brothers Harriman’s (BBH) Elias Haddad notes Brent Oil prices have bounced back just above their 200‑day moving average near $94.36 per barrel after touching the lowest level since late August at $89.16 earlier in the week.
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USD/JPY treads water near 160.00 on Friday as the risk of Japanese intervention limits gains despite a stronger US Dollar (USD).
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Oil prices show a moderate pullback on Friday as market expectations that a more aggressive Federal Reserve (Fed) monetary tightening will cap Oil consumption in the US have offset concerns about the stalled Middle East conflict.
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The British Pound (GBP) looks vulnerable against the US Dollar (USD) near its four-week low of 1.3222 during the European trade on Friday. The GBP/USD pair is under pressure due to continued outperformance by the US Dollar.
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ING’s Frantisek Taborsky notes that Central and Eastern European FX remains under pressure as higher energy prices and weaker EUR/USD drive regional currencies to new lows.
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Brown Brothers Harriman’s (BBH) Elias Haddad notes the Dollar has extended its broad gains to a 19‑month high as Fed funds rate hike expectations push Treasury yields higher.
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Societe Generale’s Kenneth Broux details a notable rotation in Asia FX positioning away from AI-linked themes. Short New Taiwan Dollar (TWD) positions are at a 2.5‑year high, long South Korean Won (KRW) positions have been cut, and bearish Indian Rupee (INR) bets have eased.
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Gold (XAU/USD) trims its gains on Friday after briefly climbing above $3,900. The metal fell to $3,852 on Thursday, its lowest level since October 2025.
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The Euro (EUR) extends losses on Friday as mixed Eurozone macroeconomic data failed to offset the broad US Dollar's (USD) strength, with US Treasury yields surging amid speculation of a large Federal Reserve (Fed) rate hike next month.
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