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Yoon Suk Yeol shocked the nation and his own ruling People Power Party on Tuesday when he imposed martial law and then rescinded it hours later, spreading turmoil in global financial markets.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 stock markets experienced a dramatic sell-off on Monday as investors reacted to the latest surge in US tariffs, raising fears of a potential global economic slowdown. European and Asian shares plummeted sharply, while US futures signaled the risk of a bear market, and oil prices also slid.
Ongoing uncertainty surrounding US President Donald Trump's tariff strategy has driven Bitcoin's value below the $75,000 mark on Monday.
Asian stock markets experienced a significant decline on Thursday following the announcement by US President Donald Trump of new reciprocal tariffs on several US trade partners. The tariffs, which range from 10% to 50%, were announced by Trump on April 2, a day he referred to as “Liberation Day.”
Shares in Nike, Adidas, and Puma fell sharply after the U.S. imposed steep tariffs on Vietnam, Indonesia, and Cambodia, key sourcing hubs. The move raises concerns over rising costs and supply chain disruptions, adding fresh uncertainty to global markets.
Swiss President Karin Keller-Sutter said Switzerland and the U.S. have agreed to accelarate trade talks.
Azerbaijan showcased its green transition plan at the Copenhagen Ministerial, targeting 30% renewable energy by 2030. The country also secured a $300 billion climate finance pledge and helped finalize a key carbon market agreement, highlighting its growing role in global climate action.
European foreign ministers signed the Lviv Statement supporting a special tribunal and a U.S.-backed ceasefire, during a visit to Ukraine that included a memorial tribute to fallen soldiers.
White House economic adviser Kevin Hassett said on Friday that early signs ahead of this weekend’s U.S.-China trade talks in Switzerland appear positive, with both sides showing mutual respect and a constructive tone.
A new U.S.-supported initiative to deliver humanitarian aid into Gaza is expected to start operating shortly, U.S. Ambassador to Israel Mike Huckabee said Friday, though specific details are yet to be made public.
India has fired a series of missiles into Pakistani-controlled territory, in what it has described as “Operation Sindoor”
For the first time in history, an American has been chosen to lead the Catholic Church, as Cardinal Robert Prevost is named pope.
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Chinese e-commerce platform Temu has announced it will no longer sell goods directly from China to U.S. customers, shifting instead to U.S.-based sellers amid the closure of a long-criticized customs loophole.
Cardinals from 70 nations have gathered in Vatican City to begin the historic conclave to elect the next pope, following the death of Pope Francis 17 days ago. This conclave is the most geographically diverse in Church history, showcasing Francis’ legacy of inclusivity.
In a notable shift from traditional Republican policy, President Donald Trump has proposed raising taxes on high-income earners to help finance broader tax cuts for middle- and working-class Americans.
Ukraine is exploring whether to replace the U.S. dollar with the euro as its reference currency, as Kyiv aligns more closely with the EU and global trade fractures deepen.
The U.S. Federal Reserve kept its benchmark federal funds rate unchanged on Wednesday, maintaining the target range at 4.25% to 4.50%, in a widely expected move as the central bank navigates a complex economic environment marked by slowing inflation, global trade tensions, and political pressure.
Ford is raising prices on three of its Mexico-made models starting May 2, becoming one of the first major automakers to react to U.S. President Donald Trump's steep auto tariffs, which are reshaping industry costs and consumer prices.
As European NATO countries rush to strengthen their armed forces, large pension bills threaten to divert funds from urgently needed military hardware.
Swiss President Karin Keller-Sutter said Switzerland and the U.S. have agreed to accelarate trade talks.
Azerbaijan showcased its green transition plan at the Copenhagen Ministerial, targeting 30% renewable energy by 2030. The country also secured a $300 billion climate finance pledge and helped finalize a key carbon market agreement, highlighting its growing role in global climate action.
European foreign ministers signed the Lviv Statement supporting a special tribunal and a U.S.-backed ceasefire, during a visit to Ukraine that included a memorial tribute to fallen soldiers.
White House economic adviser Kevin Hassett said on Friday that early signs ahead of this weekend’s U.S.-China trade talks in Switzerland appear positive, with both sides showing mutual respect and a constructive tone.
A new U.S.-supported initiative to deliver humanitarian aid into Gaza is expected to start operating shortly, U.S. Ambassador to Israel Mike Huckabee said Friday, though specific details are yet to be made public.
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