*Italian Trade Balance (Mar): 3.657B, 5.150B forecast, €4.444B previous
*Italian Trade Balance EU (Mar): 2.45B, 0.38B previous
*Eurozone Trade Balance (Mar): 36.8B, 17.5B forecast, 24.8B previous
*12:30 Canada Foreign Securities Purchases (Mar): 5.20B forecast, -6.46B previous
*12:30 Canada Foreign Securities Purchases by Canadians (Mar): 27.150B previous
*14:00 US Michigan 1-Year Inflation Expectations (May): 6.5% previous
*14:00 US Michigan 5-Year Inflation Expectations (May): 4.4% previous
*14:00 US Michigan Consumer Expectations (May): 48.0 forecast, 47.3 previous
*14:00 US Michigan Consumer Sentiment (May): 53.1 forecast, 52.2 previous
*14:00 US Michigan Current Conditions (May): 59.6 forecast, 59.8 previous
The euro strengthened on Friday as U.S. dollar weakened, following a series of weaker-than-expected U.S. economic data that reinforced expectations of further Fed rate cuts this year.The U.S. Producer Price Index (PPI) fell 0.5% in April, following an upwardly revised flat reading in March.U.S. factory production declined in April, falling 0.4% month-on-month as output dropped in both durable and non-durable goods. Meanwhile, retail sales rose just 0.1% month-on-month, slightly above expectations for no change.A weaker-than-expected retail sales report combined with a soft PPI has heightened expectations that the Federal Reserve will implement at least two rate cuts this year. Immediate resistance can be seen at 1.1332(38.2%fib), an upside break can trigger rise towards 1.1385(May 7th high).On the downside, immediate support is seen at 1.1160(50%fib), a break below could take the pair towards 1.1106(Lower BB).
GBP/USD: The British pound eased against dollar on Friday as attention turned to next week's UK inflation figures as investors seek guidance on the BoE's rate path.more persistent than the central bank anticipates, suggesting interest rates may need to remain higher than markets currently expect.Robust GDP growth has strengthened the BoE's position to maintain current interest rates should inflation continue to rise.Meanwhile, Britain will host high-level talks on Monday with European foreign ministers to strengthen defence coordination and reaffirm backing for Ukraine, ahead of PM Starmer's meeting with EU leaders. Immediate resistance can be seen at 1.3335(23.6%fib), an upside break can trigger rise towards 1.3414(Higher BB).On the downside, immediate support is seen at 1.3174(50%fib), a break below could take the pair towards 1.3015(61.8%fib).
AUD/USD: The Australian dollar edged higher on Friday as weaker U.S. dollar and easing global trade tensions supported Australian dollar. Market sentiment improved after the U.S. and China agreed to a trade truce, which investors saw as a meaningful step toward reducing the risk of a global economic slowdown. Attention now turns to the Reserve Bank of Australia's policy meeting next week. The central bank is widely expected to lower its benchmark interest rate by 25 basis points on Tuesday, with two more cuts anticipated later this year. The expected easing comes as core inflation remains within the RBA's target range.At GMT 12:20, the Australia dollar was up 0.10% to 0.6412 against the US dollar. Immediate resistance can be seen at 0.6491(38.2%fib), an upside break can trigger rise towards 0.6513(Higher BB).On the downside, immediate support is seen at 0.6385(50%fib), a break below could take the pair towards 0.6319(Lower BB).
USD/JPY: The U.S. dollar slipped against the yen on Friday as softer dollar offset downbeat Japanese GDP data. The U.S. dollar extended declined on Friday after weak economic data reinforced expectations of further policy easing by the Federal Reserve.Japan's economy contracted for the first time in a year and at a sharper pace than expected in the March quarter, data showed on Friday.Japan's economy contracted 0.7% on an annualized basis in the first quarter, much worse than the 0.2% decline projected by analysts.Market attention now turned to upcoming Tokyo-Washington talks, as Japan's Finance Minister Katsunobu Kato expressed plans to discuss FX matters with U.S. Treasury Secretary Scott Bessent.At GMT 12:20, the dollar was down 0.03% to 145.62 against the Japanese yen .Immediate resistance can be seen at 146.86 (38.2%fib)an upside break can trigger rise towards 148.28(Higher BB) .On the downside, immediate support is seen at 144.77(50%fib)a break below could take the pair towards 144.00(Psychological level)
European stocks edged higher Friday, wrapping up a strong week as upbeat earnings and low oil prices kept risk appetite supported after the U.S.-China trade truce.
At GMT (11:22) UK's benchmark FTSE 100 was last trading up at 0.38 percent, Germany's Dax was up by 0.54 percent, France's CAC was up by 0.34 percent.
Commodities Recap
Oil prices inched higher on Friday, set for a second straight weekly gain amid easing U.S.-China trade tensions, though gains were capped by rising supply expectations from Iran and OPEC+.
Brent crude futures were up 29 cents, or 0.5%, at $64.82 per barrel at 1054 GMT, while U.S. West Texas Intermediate crude futures rose 27 cents, or 0.4%, to $61.89.
Gold prices fell over 2% on Friday, heading for their worst week in six months, as a stronger dollar and a temporary U.S.-China trade deal reduced safe-haven demand.\
Spot gold was down 1.9% to $3,178.06 an ounce as of 1136 GMT. Bullion has lost more than 4% so far this week and is set for its worst weekly performance since November 2024.