Russia Central Bank Reserves $: $752.5B vs previous $763.9B

European leaders are taking Trump’s Greenland threats seriously but are uncertain on the ultimate goal. They could offer ‘carrots’ in the form of a greater US military and commercial presence on Greenland.

EUR/USD posts minor gains on Friday, trading at 1.1620 at the time of writing, after hitting six-week lows at 1.1593 on the previous day.

The US Dollar (USD) is drifting higher this week, supported by firm economic data and a slightly higher Federal Reserve (Fed) terminal rate, with Dollar Index (DXY) gradually approaching the 100 level, ING's FX analyst Chris Turner notes.

GBP/JPY hits weekly lows below 212.00 after rejection at 213.30 on Thursday.

EUR/JPY trades around 183.70 on Friday at the time of writing, up 0.15% on the day. The cross benefits from a still-fragile Japanese Yen (JPY), as investors digest mixed macroeconomic signals from the Eurozone alongside rising political risks in Japan.

Gold (XAU/USD) remains rangebound on Friday, after surging to a fresh all-time high near $4,643 earlier this week, driven by geopolitical tensions and concerns over the Federal Reserve’s (Fed) independence.

The Pound is trimming losses against the US Dollar on Friday, with price action returning above 1.3400 ahead of the US session opening, up from Thursday's lows near 1.3360. The pair is on track to end the week practically unchanged after depreciating about 0.7% in the previous two weeks.

US Dollar (USD) retreated slightly after probing yesterday its highest level since December 2, BBH FX analysts report.

The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.15% lower to near 99.20 during the European trading session on Friday, ahead of an extended weekend in the United States (US), correcting from its six-week high of 99.50 posted the previous day.

EUR/USD continues to trade with muted volatility near 5%, with the pair expected to remain range-bound as investors fund carry trades out of the Euro (EUR) rather than the more volatile Japanese Yen (JPY), ING's FX analyst Chris Turner notes.

US Dollar (USD) could edge lower but is unlikely to break the support at 6.9520. In the longer run, USD remains neutral but is now expected to trade in a lower range of 6.9520/6.9900, UOB Group's FX analysts Quek Ser Leang and Lee Sue Ann note.

USD/JPY faces a volatile month as Japan prepares for a snap election on 8 February, with outcomes potentially swaying the yen depending on LDP gains and policy expectations, ING's FX analyst Chris Turner notes.

Strong US Dollar (USD) rally has scope to extend, potentially breaking above 160.00, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

India FX Reserves, USD climbed from previous $686.8B to $687.19B in January 5

European Gas prices jumped more than 4.2%, with TTF climbing back above €33/MWh, driven by forecasts for another cold snap across the continent, ING's commodity experts Ewa Manthey and Warren Patterson note.

For the time being, New Zealand Dollar (NZD) is likely to trade in a range between 0.5720 and 0.5805, UOB Group's FX analysts Quek Ser Leang and Lee Sue Ann note.

After five days of gains, oil prices came under significant pressure yesterday, with ICE Brent settling 4.15% lower. The sell-off came as the US avoided taking immediate action against Iran amid ongoing protests in the country, ING's commodity experts Ewa Manthey and Warren Patterson note.

Gold treads water around $4.600 after failure to break record highs, at $4,640

The Indian Rupee (INR) posts a fresh two-month low against the US Dollar (USD) on Friday. The USD/INR pair jumps 0.55% to near 91.15 as the Indian Rupee underperforms across the board amid the continuous outflow of foreign funds from the Indian stock market.

EUR/GBP trades lower around 0.8660 on Friday at the time of writing, down 0.15% on the day. In the Eurozone, data published on Friday confirm a clear easing in inflationary pressures in Germany.

USD/CNH remains offered after a softer USD/CNY fixing, the lowest since May 2023, reinforcing policymakers’ signal toward a gradual RMB appreciation path. USD/CNH last seen at 6.9668, OCBC's FX analysts Sim Moh Siong and Christopher Wong note.

Bias for Australian Dollar (AUD) has shifted to the upside, but the major resistance at 0.6745 is not expected to come into view.

Silver recovered overnight after a sharp pullback driven by profit-taking following a rapid year-to-date surge of more than 25%. Silver last seen at 91.29 levels, OCBC's FX analysts Sim Moh Siong and Christopher Wong note.

There is a chance for GBP to test 1.3355; the next support at 1.3315 is likely out of reach for now. In the longer run, outlook for GBP is negative; it could decline to 1.3355, potentially reaching 1.3315, UOB Group's FX analysts Quek Ser Leang and Lee Sue Ann note.

The Japanese Yen drops 0.3% on Friday’s European session, trading right above 158.10 at the time of writing. The pair has pulled back from the 159.45 highs seen earlier this week as Japanese authorities escalated their intervention warnings. 

Oil prices fell sharply after reaching a two-month peak, as easing geopolitical tensions and comments from President Trump reduced fears of imminent disruption to Iranian supply, prompting a market pullback, OCBC's FX analysts Sim Moh Siong and Christopher Wong note.

USD/MXN has broken below its recent consolidation after failing to clear the 50-day moving average, bringing the July 2024 low near 17.60 into focus.

Euro (EUR) could drop to 1.1585 before stabilization can be expected; the major support at 1.1560 is unlikely to come under threat. In the longer run, weakness in EUR has likely resumed, with scope for a decline to 1.1560, UOB Group's FX analysts Quek Ser Leang and Lee Sue Ann note.

The Aussie Dollar appreciates against its US counterpart for the second consecutive day on Friday, returning to levels above 0.6700 at the time of writing, after bouncing from the 0.6665 area.