The US bombing at a Syrian airbase, which was supposedly used to launch deadly chemical weapons on civilians, triggered a fresh wave of global risk-aversion trade on Friday and weighed heavily on riskier/higher-yielding currencies. Investors’ attention will remain glued to the US Non-Farm Payroll, with the headline number anticipated to show an addition of 180K new jobs during March. Also in focus would be news coming out of the crucial Trump-Xi summit, which has the potential to drive a fresh bout of volatility across global financial markets and determine demand for China-proxy Australian Dollar.
Major events of the day: UK Manufacturing Production due at GMT 08:30, BOE Governor Carney speaks at GMT 09:00. US NFP data will be released at GMT 12:30, Canada unemployment rate due at the same time.
The USD was little changed against other major currencies on Friday, as investors remained cautious following a U.S. missile strike in Syria and as markets awaited the release of the NFP.
GBP/USD is extending its sideline theme on Friday, gravitating between 1.2400 and 1.2500. Cable stays to the mercy of USD-dynamics while headlines from Brexit negotiations are expected to kick in in the next weeks and should create a permanent source of volatility for the pair.
USD/JPY fell to 110.36 from the 110.94 area, likely on repatriation by Japanese investors seeking safe haven.
Investor safe-haven focus pushed Gold prices to 1269 for the first time since November 2016.
WTI and BRT prices benefited from Middle East tension and surged as high as 52.90 and 56.06 respectively.