USD pares gains for the week as major pairs hold near key levels despite subdued volatility and lack of clear catalysts.
The dollar edged lower in European trading, down against most major currencies amid a lack of fresh drivers. USD/JPY fell 0.2% to 159.13 but remained on track to close the week 0.8% higher, while EUR/USD rose 0.2% to 1.1553, holding below its 100-day moving average.
Markets showed mixed sentiment following Wednesday’s US CPI report, which failed to provide a clear directional push. GBP/USD and AUD/USD gained 0.3% and 0.2%, respectively, as risk-sensitive currencies found modest support. Oil prices climbed, with WTI crude up 1.2% to $82.25, while US 10-year yields ticked up 2 bps to 4.66%.
Equities reflected the cautious tone, with European indices trading unevenly and US futures showing little momentum. The dollar’s decline contrasted with higher yields, underscoring the week’s indecisive tone.