China’s GDP boosts market sentiment
China's 6.2% YoY industrial production growth in December, its fastest since April

The British Pound declined below 1.2200
The Euro traded near 1.0290
Gold prices edged lower from a one-month peak
China’s stronger-than-expected GDP figures provided a temporary boost to market sentiment, with industrial production climbing 6.2% YoY in December—the fastest growth since April. However, lingering concerns about potential new tariffs and trade policy uncertainties could weigh heavily on the sustainability of these gains. As global markets digest the data, the balance between optimism over Chinese economic resilience and fears of renewed trade tensions remains fragile.
Currencies
GBP/USD
The British Pound continued to face selling pressure, dipping below the 1.2200 level during European trading. A surprise decline in the UK's December retail sales, coupled with a strengthening US Dollar, has weighed on the pair. These factors add to the already challenging economic outlook for the UK.
EUR/USD
The Euro traded in negative territory near 1.0290 as the European Central Bank maintained a cautious tone, emphasizing gradual rate cuts amid ongoing economic uncertainties. The lack of clarity surrounding future US monetary policy and global geopolitical risks further dampened sentiment.
Commodities
Gold
Gold prices edged lower on Friday, retreating from their one-month peak around the $2,724-$2,725 region touched on Thursday. The dip was attributed to renewed demand for the US Dollar and a more optimistic tone in equity markets.
While the possibility of a Federal Reserve pause in its rate-cutting cycle later this month has added to bearish pressures, expectations of softer inflation and reduced US Treasury yields continue to provide underlying support for the yellow metal. Gold remains poised for its third consecutive weekly gain, reflecting a mixed backdrop of geopolitical developments and monetary policy shifts.
Silver
Silver prices saw a boost from China’s impressive industrial production data. The metal’s performance was further supported by market bets on a more accommodative stance from the Federal Reserve, driven by signs of easing US inflation.
WTI Crude Oil
Oil prices hovered near $77.85 in early Asian trading, weighed down by maritime security developments. However, the optimism surrounding rising demand for oil during the Lunar New Year offers potential support, mitigating broader downside risks.