Market participants in both the Eurozone and the United States are gearing up for a series of interest rate cuts expected to unfold this year. The US Federal Reserve is anticipated to implement two interest rate cuts, each by 25 basis points. Meanwhile, the European Central Bank (ECB) is projected to proceed with four interest rate reductions. These adjustments come as easing concerns over aggressive US tariffs on China have allowed the XAU/USD to push higher, reflecting a more optimistic outlook in the marketplace.
Investor attention is also focused on the upcoming US PMI reports, which are expected to provide further insight into the economic landscape. While these developments shape market expectations, it is essential to note that neither the author nor FXStreet are registered investment advisors. The information presented in this article should not be considered as investment advice, and the views expressed are those of the authors and do not necessarily represent the official policy or position of FXStreet or its advertisers.
In currency markets, GBP/USD extended its weekly uptrend, reaching a two-week high above 1.2400 on Friday. This uptick was supported by better-than-expected preliminary January PMI data from the UK, which strengthened the Pound Sterling. Similarly, EUR/USD gathered bullish momentum, trading near 1.0500 as market focus shifted towards macroeconomic data releases from the US.
Gold prices maintained their daily gains above $2,770 on Friday, trading close to the record-high of $2,790 set in late October. This resilience in gold prices indicates continued investor interest in safe-haven assets amid changing economic dynamics.
Additionally, Dogelon Mars (ELON) continued its rally on Friday, marking an increase of over 18% this week. This cryptocurrency's upward trajectory highlights the burgeoning interest and activity within the digital asset market.