The global financial market experienced subdued US Dollar price action as risk sentiment began to stabilize, offering a cautious optimism to traders. The financial community is anticipating the release of the US Personal Consumption Expenditures (PCE) Price Index, considered a critical indicator of inflation. Meanwhile, Bitcoin's price hovered around $104,000 on Friday, having rebounded earlier this week from its 50-day Exponential Moving Average of approximately $98,800.
In Europe, the European Central Bank (ECB) announced another interest rate cut by 25 basis points as part of its ongoing rate cut cycle. This move comes as the ECB continues its efforts to stimulate economic growth within the eurozone. The decision reflects a broader strategy to bolster economic activity amid continuing challenges.
Rebounding US bond yields are playing a significant role in the current market dynamics. While these yields support the US Dollar, they simultaneously limit the upward potential for the XAU/USD pair. In currency markets, GBP/USD was observed trading within a narrow range above 1.2400 during the European session on Friday. Similarly, EUR/USD maintained a tight trading channel around 1.0400.
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