The EUR/USD pair showed upward momentum, climbing toward 1.0500 during the European trading session on Friday. This rise was largely attributed to positive economic data from Germany, which reported a notable expansion in its private sector's business activity for January. The German Purchasing Managers' Index (PMI) data buoyed the Euro, instilling confidence in investors and providing a boost to the currency pair.
The Federal Reserve has indicated that it requires substantial evidence of economic slowdown and reduced inflation rates before considering further policy easing. However, recent developments have shifted market sentiment, contributing to the broad weakness of the US Dollar. US President Trump's approach of avoiding tariff talks with China has also played a role in this dollar softness.
In addition to the EUR/USD movement, the GBP/USD managed to maintain its rebound, trading around 1.2400 in the European session on Friday. The focus now shifts to the upcoming PMI reports from both the UK and the US, which are anticipated by market participants to provide further insights into the economic health of these regions.
Meanwhile, the cryptocurrency market witnessed notable activity as Dogelon Mars (ELON) continued its upward trajectory. The digital currency rallied more than 18% this week, sustaining its positive momentum on Friday.
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