The Euro strengthened as the PMI data from Germany and the Eurozone indicated an expansion in the private sector's business activity in January, boosting investor sentiment. The EUR/USD pair responded positively, pushing higher due to this upbeat PMI data. Meanwhile, Dogelon Mars (ELON) continued its impressive rally on Friday, surging more than 18% throughout the week. In the U.S., President Donald Trump announced his intentions to advocate for further interest rate cuts and urged OPEC to lower crude oil prices.
The PMI data revealed a notable expansion in Germany and the Eurozone's private sector, signaling increased business activity and investor confidence. This development contributed to strengthening the Euro, as reflected in the EUR/USD pair's upward trajectory. At the same time, the GBP/USD pair extended its weekly uptrend, trading at a two-week high near 1.2450 on Friday.
In contrast, U.S. financial markets witnessed a mixed performance. The U.S. 2-year yield experienced a decline, while crude oil prices also fell. Despite these downturns, the S&P500 managed to extend its gains, reaching a fresh all-time high yesterday. This rise comes amidst continued market optimism and investor confidence in equity markets.
President Trump's call for interest rate cuts and lower crude prices has drawn attention as he seeks to stimulate economic growth. The Federal Reserve, however, has signaled that it requires more evidence of economic weakness and subdued inflation prints before considering further policy loosening measures.
The report, intended solely for informational purposes, may be subject to change without prior notice. It does not constitute a solicitation or offer to buy or sell any currency or financial instrument. Investors are advised to exercise caution and consider market volatility when making financial decisions based on this data.