Friday's trading session opened with major currency pairs moving within tight ranges following Thursday's market fluctuations. Investors remain cautious while awaiting critical inflation metrics from Germany and ADA coin price predictionthe US Personal Consumption Expenditures (PCE) Price Index data for December. The US economic calendar also highlights the release of fourth-quarter Employment Cost Index figures before markets close for the weekend.
Weekly US Dollar Performance Snapshot
The US Dollar demonstrated notable strength this week, particularly against the Australian Dollar. Below is a comprehensive breakdown of USD's weekly performance against major global currencies:
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.83% | 0.40% | -0.62% | 0.50% | 1.32% | 0.89% | 0.41% | |
| EUR | -0.83% | -0.35% | -1.30% | -0.18% | 0.50% | 0.19% | -0.31% | |
| GBP | -0.40% | 0.35% | -1.25% | 0.18% | 0.85% | 0.56% | 0.04% | |
| JPY | 0.62% | 1.30% | 1.25% | 1.17% | 2.13% | 1.76% | 1.18% | |
| CAD | -0.50% | 0.18% | -0.18% | -1.17% | 0.62% | 0.39% | -0.13% | |
| AUD | -1.32% | -0.50% | -0.85% | -2.13% | -0.62% | -0.27% | -0.76% | |
| NZD | -0.89% | -0.19% | -0.56% | -1.76% | -0.39% | 0.27% | -0.73% | |
| CHF | -0.41% | 0.31% | -0.04% | -1.18% | 0.13% | 0.76% | 0.73% |
This interactive heatmap illustrates percentage fluctuations between major currencies. The base currency selection occurs in the left column, with the quote currency chosen from the top row. For instance, selecting US Dollar from the left and moving horizontally to Japanese Yen displays the percentage change for USD (base)/JPY (quote) pairing.
The European Central Bank implemented a widely anticipated 25 basis point rate reduction on Thursday, maintaining its existing policy framework without significant modifications. ECB President Christine Lagarde avoided committing to future rate adjustments, emphasizing data-dependent decision-making. EUR/USD initially climbed above 1.0450 before retreating to close lower. Friday's disappointing German Retail Sales data (-1.6% monthly decline versus +0.2% forecast) failed to significantly impact the currency pair, which continues trading near 1.0400.
US economic data revealed mixed signals on Thursday, with fourth-quarter GDP growth slowing to 2.3% annually (from Q3's 3.1%), missing the 2.6% consensus estimate. However, weekly Initial Jobless Claims improved to 207,000. The US Dollar Index demonstrated resilience, posting modest gains and currently consolidating near 108.00.
In geopolitical developments, former US President Donald Trump escalated trade tensions through social media, threatening new 25% tariffs on Canadian and Mexican imports related to fentanyl concerns. Additional warnings included potential 100% tariffs on BRICS nations if they attempt to displace the US Dollar in international trade.
Bank of Japan Governor Kazuo Ueda noted persistent inflation below target levels on Friday, reaffirming commitment to accommodative policies. USD/JPY rebounded over 154.50 following Thursday's 0.5% decline.
GBP/USD encountered resistance above 1.2450 on Thursday, closing slightly lower before stabilizing with minor gains on Friday.
Gold markets witnessed exceptional bullish momentum, surging over 1% on Thursday to establish new historic highs approaching $2,800 per ounce, continuing its upward trajectory into Friday's session.