· The dollar slipped against its rivals on Friday and was set for its biggest weekly drop in more than three months before a U.S. central bank meeting next week where policymakers will shed more light on the outlook for interest rates.
Against its rivals, the dollar fell 0.2 percent to 96.61 in early London trading. For the week, it is set to weaken 0.7 percent, its biggest drop since early December.
· The British pound paused for breath on Friday but stayed on course for its biggest weekly gain in seven weeks after the UK parliament voted to seek a delay in Britain's exit from the European Union, following a decision to avert a no-deal Brexit.
The yen was off one-week lows after the Bank of Japan kept its policy on hold and a report that North Korea is considering suspending nuclear talks with the United States.
Sterling last traded at $1.3252, having slipped further from Wednesday's nine-month high of $1.3380, with its fall of 0.76 percent on Thursday.
But it is up 1.8 percent so far this week, the biggest such gain since late January, supported by relief that Britain will avoid crashing out of the EU without a deal.
The euro traded at $1.1320, up 0.15 percent.
· EUR/USD Technical Analysis: Buyers Aiming for 1.3338 Resistance
Following the drop caused by the ECB rate decision and outlook, EUR/USD turned around at 1.119 and has continued to rise along a frequently-tested support range on the 4-hour chart below Despite breaking through it yesterday, the pair appear to be mounting up for a possible re-entry. A resumption above the dominant support would strengthen the case that the pair is aiming toward 1.3339.
· Japanese Yen Weakens Slightly As BoJ Holds Policy, Sounds Gloomier
The Japanese Yen weakened very slightly against the US Dollar Friday after the Bank of Japan left all its monetary policy settings on hold.
Meanwhile, USD/JPY’s daily chart shows the pair very much still within the uptrend which has dominated trade for much of this year, as risk appetite has in turn held up as investors keep faith that a trade settlement between Washington and Beijing will ultimately reachable.
However, the JPY112.00 handle remains elusive for US Dollar bulls on a daily closing basis, even as they seem to be gearing up for another try at it.
That level will need to be convincingly retaken, however, is the pair is to push on upward to the peaks of mid-December 2018 which now bar the way higher.
· The U.S. House of Representatives overwhelmingly approved a non-binding resolution on Thursday calling for Special Counsel Robert Mueller’s upcoming report on his probe into Russia’s role in the 2016 election to be released to Congress and the public.
The measure faces an uncertain future in the Republican-led Senate. A bid by the Senate’s top Democrat, Chuck Schumer, to have the resolution approved by voice vote after the House’s action was thwarted by Republican Senator Lindsey Graham.
· Chinese Premier Li Keqiang said Friday that the government will remain supportive of the economy in the face of new pressures on growth.
"It is true that China's economy has encountered new, downward pressure," Li said in Mandarin, according to an official translation of his remarks at a press conference. He also pointed out that the slowdown in the world's second-largest economy came as global growth was also under pressure.
· The Bank of Japan kept monetary policy steady on Friday and offered a bleaker assessment of exports and output, nodding to heightening overseas risks that could threaten to derail a fragile economic recovery.
The central bank also modified its view on Japan’s overall economy, pointing to the impact from slowing overseas growth.
In a widely expected move, the BOJ maintained its short-term interest rate target at minus 0.1 percent and a pledge to guide 10-year government bond yields around zero percent.
· Following are comments from BOJ Governor Haruhiko Kuroda at his post-meeting news conference:
“It is true Japan’s exports and output are being affected by slowing overseas growth. On the other hand, domestic demand continues to grow. As such, we maintain our baseline view that the economy is expanding moderately.
“It will likely take longer to achieve our price target. However, the output gap is improving ... Most board members think it’s most appropriate to patiently maintain our current stimulus program.”
ON WHETHER BOJ SHOULD MAKE INFLATION TARGET MORE FLEXIBLE “I don’t think there is a need to make any changes to our price target.”
· North Korea is considering suspending nuclear talks with the United States, Vice Foreign Minister Choe Son Hui said on Friday, according to Russia’s TASS news agency.
North Korea has no intention to yield to U.S. demands or engage in negotiations of this kind, Choe told a press conference in the North Korean capital Pyongyang, TASS reported.
North Korea leader Kim Jong Un is set to make an official announcement soon on his position regarding talks with United States, TASS reported, citing Choe.
· Oil prices were firm on Friday amid production cuts led by OPEC and as U.S. sanctions against Venezuela and Iran likely created a slight deficit in global supply in the first quarter of 2019.
But oil prices have been capped by concerns that an economic slowdown will soon start denting growth in fuel demand.
Brent crude oil futures were at $67.27 per barrel at 0425 GMT, 4 cents above their last close, and within a dollar of the $68.14 2019-high reached the previous day.
U.S. West Texas Intermediate (WTI) crude oil futures were at $58.63 per barrel, 2 cents above their last settlement, and not far off their 2019-high of $58.74 from the previous day.
Despite Friday's dips, oil has rallied around a quarter since the start of the year.
A nationwide power failure in crisis-stricken Venezuela could trigger “serious disruption” to the oil market, the International Energy Agency (IEA) warned on Friday, but OPEC kingpin Saudi Arabia should have the means to offset any further production woes in Caracas.
Reference: Reuters, CNBC, FX Street, Daily FX
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