Major currencies remained jittery on Friday as markets considered the impact of a politically turbulent week that saw the collapse of France's government and the brief imposition of martial law in South Korea.
Major currencies remained jittery on Friday as markets considered the impact of a politically turbulent week that saw the collapse of France's government and the brief imposition of martial law in South Korea.
The U.S. dollar spiked against South Korea's won KRW= after local media reported that South Korea's main opposition Democratic Party said lawmakers were on standby after receiving reports of another martial law declaration.
The won was last down 0.43% at 1419.32.
South Korea's President Yoon Suk Yeol shocked the nation and his own ruling People Power Party on Tuesday when he imposed martial law and then rescinded it hours later, spreading turmoil in global financial markets.
The political upheaval has kept Korean markets on edge even as authorities pledged to provide 'unlimited liquidity' to stabilise conditions.
In cryptocurrencies, bitcoin BTC= took a breather after catapulting above $100,000 for the first time a day earlier, and even sceptics now expect a crypto-friendly Trump administration to feed an extended rally.
On the broader economic front, the spotlight will be on the U.S. non-farm payrolls report for November due later in the day as investors look to second guess the pace of future Federal Reserve rate cuts.
Payrolls are expected to have increased by 200,000 jobs last month, according to a Reuters survey, after rising by only 12,000 in October, the lowest number since December 2020.
"The Fed will be wary of placing too much weight on the expected steep rebound in payrolls in November," said Sean Callow, senior FX analyst at InTouch Capital Markets.
"So long as the unemployment rate doesn't fall back to 4.0%, markets should be comfortable about leaning towards a rate cut this month, which should keep a lid on dollar rallies."
Markets currently see about a 72% chance that the Federal Reserve will deliver a 25-basis-point rate cut when it meets on Dec. 17-18, up from 66.5% a week ago, CME FedWatch tool showed.
The dollar index =USD, which measures the greenback against six rivals, rose 0.10% to 105.82 after slipping towards a three-week low in the previous session.
The euro EUR=EBS slid 0.14% to $1.0574 after bouncing on Thursday as French bonds stabilised, pulling further away from a two-year low of $1.03315 hit at the end of November.
French President Emmanuel Macron met allies and parliament leaders on Thursday as he sought to swiftly appoint a new prime minister to replace Michel Barnier, who officially resigned a day after opposition lawmakers voted to oust his government.
For now, the European Central Bank isn't expected to react to heightened political turmoil in Europe when it meets next week.
All but two of 75 economists polled by Reuters believe the ECB will trim 25 basis points from its deposit rate on Dec. 12.
Traders are also all but certain about a rate cute next week.
The euro bloc currency was on track to post a loss this week, the fourth in the last five weeks.
BOJ RATE OUTLOOK IN FOCUS
Traders are pondering the likelihood of a rate hike at the Bank of Japan's meeting on Dec. 18-19 after media reports published on Wednesday suggested the BOJ may stand pat this month, muddling market expectations.
But comments from typically dovish policymaker Toyoaki Nakamura that he's not opposed to rate hikes helped push the currency higher on Thursday.
The dollar was down 0.06% against the yen at 149.98. Government data showed Japanese household spending dropped 1.3% in October from a year earlier, coming in better than expected.
Sterling GBP=D3 traded at $1.2746, down 0.11% on the day.
In cryptocurrencies, bitcoin BTC= hovered lower as traders locked in profit after Thursday's break above the $100,000 milestone.
The world's best known cryptocurrency has been on a tear since November on bets that Donald Trump's U.S. presidential election win will usher in a friendly regulatory environment for cryptocurrencies.
Trump on Thursday said he was appointing former PayPal PYPL.O Chief Operating Officer David Sacks as his artificial intelligence and cryptocurrency czar.
Bitcoin briefly slid to a one-week low and was last down 1.11% at $97,911, well off its all-time-high of $103,649 hit the previous day.
Georgia has officially begun dredging works for the long-awaited Anaklia Deepwater Port after the arrival of the first dredging vessel, marking a sign...
Iran said on Monday (3 August) it is not negotiating with the U.S. over reopening the Strait of Hormuz, saying current talks with Oman are focused sol...
The Pacific island nation formerly known internationally as Nauru has officially adopted the name Republic of Naoero, restoring the traditional name u...
A tourist aircraft crashed near Peru's UNESCO-listed Nazca Lines on Saturday (1 August), killing all 13 people on board, authorities said.
Iranian Foreign Ministry Spokesperson Esmaeil Baghaei has said Tehran is not currently involved in direct talks with Washington about reopening the Strait of Hormuz. U.S. President Donald Trump said negotiations with Iran were to begin on Monday.
U.S. President Donald Trump said late on Saturday he would hold off on a fresh attack on Iran as long as a deal could be reached quickly to halt Iran's nuclear ambitions and reopen the Strait of Hormuz.
Two firefighting helicopters collided while battling a major wildfire in Greece on Sunday, killing two crew members as emergency services continued efforts to contain fires fuelled by extreme heat and dry conditions across Europe.
French Prime Minister Sebastien Lecornu said wildfires that swept across France were now under control. Authorities warned that risks remained as Greece and Spain continued battling active blazes across parts of Europe.
Ford raised its full-year earnings forecast after reporting stronger-than-expected second-quarter adjusted profit, as resilient demand for its vehicles and operational improvements helped offset tariff-related costs.
SK Hynix reported record quarterly profit on Wednesday, but its shares slumped 10 per cent after the South Korean chipmaker fell short of investor expectations built around the artificial intelligence (AI) boom.
Oil prices have fallen more than six per cent as a pause in U.S.-Iran hostilities eased fears of wider supply disruption around the Gulf.
Paramount Skydance agreed to pause its acquisition of Warner Bros Discovery until after a ruling on a challenge by states to the deal, plunging the $110 billion deal into further uncertainty.
China's Foreign Ministry has said it is closely monitoring the United Kingdom's nationalisation of British Steel. Prior to the British government fully taking over the loss-making company on Thursday, it was previously owned by Chinese private steelmaker Jingye.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment