Canada Canadian Portfolio Investment in Foreign Securities increased to $16.49B in November from previous $-11.58B

Canada Foreign Portfolio Investment in Canadian Securities: $16.33B (November) vs previous $46.62B

Canada Housing Starts s.a (YoY) above expectations (260K) in December: Actual (282.4K)

Russia Central Bank Reserves $: $752.5B vs previous $763.9B

European leaders are taking Trump’s Greenland threats seriously but are uncertain on the ultimate goal. They could offer ‘carrots’ in the form of a greater US military and commercial presence on Greenland.

The US Dollar (USD) is drifting higher this week, supported by firm economic data and a slightly higher Federal Reserve (Fed) terminal rate, with Dollar Index (DXY) gradually approaching the 100 level, BBH FX analysts report.

GBP/JPY hits weekly lows below 212.00 after rejection at 213.30 on Thursday.

Ripple (XRP) is edging lower toward the pivotal $2.00 level at the time of writing on Friday, marking three consecutive days of declines. The sell-off extends across the crypto market, with Bitcoin (BTC) falling toward $95,000 and Ethereum (ETH) pressing down on support at $3,300.

EUR/JPY trades around 183.70 on Friday at the time of writing, up 0.15% on the day. The cross benefits from a still-fragile Japanese Yen (JPY), as investors digest mixed macroeconomic signals from the Eurozone alongside rising political risks in Japan.

Gold (XAU/USD) remains rangebound on Friday, after surging to a fresh all-time high near $4,643 earlier this week, driven by geopolitical tensions and concerns over the Federal Reserve’s (Fed) independence.

The Pound is trimming losses against the US Dollar on Friday, with price action returning above 1.3400 ahead of the US session opening, up from Thursday's lows near 1.3360. The pair is on track to end the week practically unchanged after depreciating about 0.7% in the previous two weeks.

US Dollar (USD) retreated slightly after probing yesterday its highest level since December 2, BBH FX analysts report.

Bitcoin (BTC) holds above support at $95,000 at the time of writing on Friday, after retracing from its recent high of $97,924 amid profit-taking and emerging regulatory headwinds in the United States (US).

The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.15% lower to near 99.20 during the European trading session on Friday, ahead of an extended weekend in the United States (US), correcting from its six-week high of 99.50 posted the previous day.

EUR/USD continues to trade with muted volatility near 5%, with the pair expected to remain range-bound as investors fund carry trades out of the Euro (EUR) rather than the more volatile Japanese Yen (JPY), ING's FX analyst Chris Turner notes.

US Dollar (USD) could edge lower but is unlikely to break the support at 6.9520. In the longer run, USD remains neutral but is now expected to trade in a lower range of 6.9520/6.9900, UOB Group's FX analysts Quek Ser Leang and Lee Sue Ann note.

USD/JPY faces a volatile month as Japan prepares for a snap election on 8 February, with outcomes potentially swaying the yen depending on LDP gains and policy expectations, ING's FX analyst Chris Turner notes.

Strong US Dollar (USD) rally has scope to extend, potentially breaking above 160.00, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

India FX Reserves, USD climbed from previous $686.8B to $687.19B in January 5

European Gas prices jumped more than 4.2%, with TTF climbing back above €33/MWh, driven by forecasts for another cold snap across the continent, ING's commodity experts Ewa Manthey and Warren Patterson note.

For the time being, New Zealand Dollar (NZD) is likely to trade in a range between 0.5720 and 0.5805, UOB Group's FX analysts Quek Ser Leang and Lee Sue Ann note.

After five days of gains, oil prices came under significant pressure yesterday, with ICE Brent settling 4.15% lower. The sell-off came as the US avoided taking immediate action against Iran amid ongoing protests in the country, ING's commodity experts Ewa Manthey and Warren Patterson note.

Gold treads water around $4.600 after failure to break record highs, at $4,640

Bitcoin (BTC) price holds above $95,500 at the time of writing on Friday after rallying more than so far 5% this week. The rising institutional and corporate demand supports the bullish price action in BTC.

EUR/GBP trades lower around 0.8660 on Friday at the time of writing, down 0.15% on the day. In the Eurozone, data published on Friday confirm a clear easing in inflationary pressures in Germany.

USD/CNH remains offered after a softer USD/CNY fixing, the lowest since May 2023, reinforcing policymakers’ signal toward a gradual RMB appreciation path. USD/CNH last seen at 6.9668, OCBC's FX analysts Sim Moh Siong and Christopher Wong note.

Bias for Australian Dollar (AUD) has shifted to the upside, but the major resistance at 0.6745 is not expected to come into view.