The Dollar remains on the defensive, capped below 0.8700. The Fed’s Dovish turn keeps weighing on the USD. US ISM PMIs and the NY Fed index might increase dollar volatility later today. (FXStreet)

NZD/USD extends its gains amid the improved Kiwi Manufacturing Index. Business NZ PMI advanced to 46.7 in November from the previous readings of 42.5. Technical indicators suggest retesting the five-month high at 0.6249. (FXStreet)

The Japanese Yen continues to be undermined by expectations for a hawkish BoJ pivot in 2024. Fed rate cut bets drag the USD to over a four-month low and act as a headwind for USD/JPY. The risk-on mood might cap the JPY and limit losses for the pair ahead of the flash global PMIs. (FXStreet)

USD/CAD plummets to a near three-month low and is pressured by a combination of factors. The Fed’s dovish shift, along with the risk-on mood, continues to weigh heavily on the USD. The recent goodish recovery in Oil prices underpins the Loonie and contributes to the decline. (FXStreet)

GBP/USD stays tranquil as it anticipates the upcoming PMI data from both countries. A break above the 1.2800 could lead the pair to approach August’s high at 1.2841. A breach below the 1.2700 could push the pair towards the 14-day EMA at 1.2624. (FXStreet)

USD/CHF continues its losing streak on a weaker US Dollar. SNB maintained the key interest rate at 1.75%. SNB Chairman Thomas Jordan’s hawkish remarks reinforced the strength of the Swiss Franc. DXY hit a four-month low at 101.77 on Thursday on the Fed’s dovish outlook. (FXStreet)

EUR/USD continues to draw support from the divergent ECB-Fed policy outlook. The technical setup favours bullish traders and supports prospects for further gains. Some follow-through buying beyond the 1.1015 area will reaffirm the positive bias. (FXStreet)

USD/MXN rebounds as US Dollar attempts to recover recent losses. Banxico maintained policy rates at the level of 11.25% in December’s meeting. Fed’s dovish stance contributed to undermining the Greenback. (FXStreet)

GBP/JPY pulls back ahead of the release of Purchasing Managers Index data from the UK. BoE Governor Andrew Bailey’s hawkish remarks bolster the Pound Sterling. Japanese Yen could gain ground from growing expectations of a change in the BoJ's policy stance in 2024. (FXStreet)

AUD/JPY holds positive ground around 95.15 during the early European session on Friday. Chinese leaders agreed to set China’s 2024 growth target at around 5.0% and target a budget deficit of 3% of GDP in 2024. The report that the Bank of Japan (BoJ) might exit its negative rate policy sooner than expected lends support to the JPY. Market participants will closely watch the BoJ monetary policy meeting next week. (FXStreet)

EUR/GBP trades sideways around 0.8609 on Friday. The European Central Bank (ECB) held interest rates steady at 4.0% at its December meeting. The Bank of England (BoE) maintained the benchmark rates unchanged at a 15-year high of 5.25%. The Eurozone and UK’s Purchasing Managers' Index (PMI) data will be released on Friday. (FXStreet)

Indian Rupee edges higher amid the softer US Dollar. India's Wholesale Price Index (WPI) inflation emerged from the deflationary zone, rising to 0.26% in November. Investors await the Indian Trade Balance and the US S&P Global PMI report for fresh impetus. (FXStreet)

WTI price continues to gain ground on the subdued US Dollar. IEA predicts that Global oil consumption will increase by 1.1 million bpd in 2024. China's Industrial Production improved to 6.6% in November. (FXStreet)

Gold price is seen consolidating its weekly gains registered over the past two days. Rebounding US bond yields and a positive risk tone act as a headwind for the metal. The Fed’s dovish tilt, along with sustained USD selling, continue to lend support. (FXStreet)

Silver struggles to capitalize on a two-day-old strong uptrend and edges lower on Friday. The technical setup favours bullish traders and supports prospects for additional gains. Corrective slide back towards the 200-day SMA could get bought into and remain limited. (FXStreet)

Source: FXStreet

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