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Yoon Suk Yeol shocked the nation and his own ruling People Power Party on Tuesday when he imposed martial law and then rescinded it hours later, spreading turmoil in global financial markets.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.
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Global oil prices rose sharply in early 2026, with Brent crude exceeding $100 per barrel in mid-March after disruptions in the Middle East and heightened risks in the Strait of Hormuz.
The S&P 500 edged to a record closing high on Tuesday, marking its fifth consecutive day of gains, as strong advances in technology stocks offset a sharp selloff in healthcare shares and a mixed batch of corporate earnings.
European shares climbed on Thursday, as a relief rally swept through global markets after artificial intelligence (AI) bellwether Nvidia reported strong earnings, while investors awaited the release of delayed U.S. jobs data.
U.S. President Donald Trump and First Lady Melania Trump were rushed out of the White House Correspondents' Association Dinner by Secret Service agents after a 31 year old suspect attempted to storm event.
President Donald Trump said on Sunday Iran could telephone if it wants to negotiate an end to their two-month war. Tehran said the U.S. should remove obstacles to a deal, including its blockade of Iran's ports. Meanwhile Iranian Foreign Minister Abbas Araghchi arrives in St Petersburg for talks.
Disney+ has debuted Disney Animation’s Songs in Sign Language, a new collection of animated musical sequences reimagined in American Sign Language (ASL), released on 27 April to mark National Deaf History Month.
Adidas shares rose after Kenya’s Sebastian Sawe delivered a historic performance at the London Marathon on Sunday (26 April), becoming the first athlete to run an official marathon in under two hours.
Market reaction to DeepSeek’s preview of its next-generation artificial intelligence model has been relatively subdued, in sharp contrast to the global shock triggered by its breakthrough releases last year.
China has ordered Meta to unwind its more than $2 billion acquisition of artificial intelligence start-up Manus, marking a major escalation in Beijing’s scrutiny of foreign investment in sensitive technology sectors. The order was issued on Monday by the National Development and Reform Commission.
Adidas shares rose after Kenya’s Sebastian Sawe delivered a historic performance at the London Marathon on Sunday (26 April), becoming the first athlete to run an official marathon in under two hours.
The United States has issued an international warning accusing Chinese firms, including AI start-up DeepSeek, of allegedly stealing intellectual property from American artificial intelligence labs.
Meta Platforms will cut about 10% of its global workforce from 20 May, marking the start of a wider restructuring as the company increases spending on artificial intelligence (AI) and plans further layoffs later this year, according to sources familiar with the matter.
President Donald Trump has warned that the U.S. could impose "big" tariffs on British goods if the UK does not remove its digital services tax. Speaking to reporters at the White House on Thursday, Trump said Washington was ready to act in response to the levy on major American technology firms.
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