The US Dollar (USD) continues to benefit from risk aversion and gathers strength early Friday, with the US Dollar Index extending Thursday’s rebound toward 103.00. S&P Global will release the preliminary June Manufacturing and Services PMI surveys for Germany, the Eurozone, the UK and the US. Investors will also pay close attention to comments from central bank officials.

On Thursday, the Bank of England (BoE) surprised markets with a 50 basis points (bps) rate increase. The BoE reiterated in its policy statement that further tightening in the monetary policy will be required if price pressures proved to be more persistent. Although GBP/USD spiked above 1.2800 with the immediate reaction, it reversed its direction and closed the day in negative territory amid broad USD strength. In the European morning on Friday, the pair continues to edge lower toward 1.2700.

Similarly, the Swiss National Bank hiked its policy rate by 25 bps to 1.75%. In the post-meeting press conference, SNB Chairman Thomas Jordan said that they cannot rule out additional policy tightening. Following a short-lasting drop toward 0.8900, USD/CHF staged a rebound and registered small daily gain on Thursday. The pair preserves its recovery momentum and rises toward 0.9000 on Friday.

Reflecting the risk-averse market atmosphere, US stock index futures are down between 0.4% and 0.5% in the European morning. Meanwhile, the benchmark 10-year US Treasury bond yield consolidates weekly gains slightly below 3.8%. On the second day of his congressional testimony, FOMC Chairman Jerome Powell noted that it will be appropriate to raise rates one or two more times this year and added that they are not seeing any rate cuts anytime soon.

EUR/USD failed to stabilize above 1.1000 on Thursday and fell to the 1.0950 area during the American trading hours. The pair stays on the back foot and retreats toward 1.0900 in the early European session.

USD/JPY gained more than 100 pips on Thursday and advanced to its highest level since November near 143.50 during the Asian trading hours on Friday.

Pressured by rising US Treasury bond yields, Gold price suffered large losses and closed the fifth straight trading day in negative territory on Thursday. XAU/USD touched a three-month low at $1,910 early Friday before recovering modestly in the European morning.

Following Wednesday’s impressive rally, Bitcoin fluctuated in a tight channel above $30,000 on Thursday. BTC/USD holds steady near that level on Friday. Ethereum lost 1% on Thursday and closed slightly below $1,900. ETH/USD continues to move sideways in the European morning.

EURUSD

EUR/USD is extending the overnight correction from six-week highs above 1.1000, drifting toward 1.0900 early Friday.  The Fed’s hawkish outlook and the risk-off impulse continue to underpin the safe-haven buck. EU and US PMIs in focus.

 If the pair continues the uptrend to the range of 1.0995, it is expected to continue the uptrend to the range of 1.1034.

On the other hand, If the pair continues the downtrend to the range of 1.0871, it is expected to continue the downtrend to the range of 1.0793.

USDJPY

USD/JPY makes rounds to 143.00 amid a lackluster Friday morning in Europe, after refreshing the yearly top the previous day. In doing so, the Yen pair pauses the previous two-day uptrend amid an overbought RSI (14) line. Adding strength to the quote’s latest inaction could be the cautious mood ahead of the US PMIs and fears of the US recession.

if the pair continues the uptrend to the range of 144.27, it is expected to continue the uptrend to the range of 145.31.

On the other hand, If the pair continues the downtrend to 142.65, it is expected to continue the downtrend to 142.07

GBPUSD

GBP/USD is consolidating losses above 1.2700 after the UK Retail Sales for May beat estimates with 0.3% MoM. The pair is on the back foot amid ongoing US Dollar recovery and broad risk aversion ahead of the UK and US Preliminary Manufacturing and Services PMI data.

If the pair continues the uptrend to the range of 1.2767, it is expected to continue the uptrend to the range of 1.2809.

On the other hand, if the pair continues the downtrend to 1.2665, it is expected to continue the downtrend to 1.2605.

AUDUSD

AUD/USD is falling toward 0.6700, changing course after the Australian S&P Global PMIs for June came in mixed data early Friday. The pair is losing ground, as the US Dollar is extending its recovery amid intensifying risk-off flows on global economic concerns. Focus on US PMIs, Fedspeak.

If the pair continues the uptrend to the range of 0.6708, it is expected to continue the uptrend to the range of 0.6732.        

On the other hand, if the pair continues the downtrend to 0.6671, it is expected to continue the downtrend to 0.6604.

XAUUSD

Gold price remains on the way to posting the biggest weekly loss since late January as the US Dollar cheers the market’s risk-off mood, as well as the hawkish Federal Reserve (Fed) concerns. Central banks bolster recession woes and underpin US Dollar run-up, weighing on XAU/USD.

If the pair continues the uptrend to the range 1928.47, it is expected to continue the uptrend to the range of 1943.07.

On the other hand, if gold continues the downtrend to the range of 1905.87, it is expected to continue the downtrend to the range 1897.87.