Euro rose in European trade against a basket of major rivals, extending gains for the fourth straight session against the dollar and hitting a one-week high amid a positive outlook. 

Traders are buying up the EUR/USD pair around the low barrier of $1.07, while expecting more positive data this week from the eurozone.

EUR/USD

EUR/USD rose 0.15% to 1.0788, with a session-low at 1.0771, after rising 0.1% on Friday, the third profit in a row, moving off three-month lows at 1.0695. 

The pair lost 0.1% last week, the fifth weekly loss in a row due to concerns about a widening US-European interest rate gap.

Bullish Outlook 

Goldman Sachs’ analysts believe the EUR/USD pair will find support around the low barrier of 1.0700, following US retail sales data last week which will hinder a decline below 1.0700. 

The analysts expect the support to be carried on this week, with little volatility in the market. 

The UBS bank said that initial PMI data could show potential recovery in the eurozone, boosting the euro’s standing against major rivals. 

Hydrogen could be the biggest next thing in the automotive industry, and in fact, the International Energy Agency expects hydrogen to fuel 16% of land-based transport by the middle of the century. 

Some industry analysts and insiders are even expecting hydrogen cars to overcome EVs in upcoming years as a green alternative, although that remains quite optimistic. 

Hydrogen engines only produce water molecules as a byproduct, representing a true green and planet-friendly alternative to gasoline and fuel, thus companies invested millions of dollars to investigate its usages. 

Toyota in particular is a massive proponent of hydrogen fuel, and last month, Chairman Akio Toyoda said he expects EV cars to peak at 30% of total global market share, with internal combustion engines and hydrogen cars accounting for the rest.

BMW is alo a significant proponent of the technology, continuing to invest considerable resources in its developments in recent years. 

There are already several hydrogen cars in the market, the Mirai from Toyota, and the Nexo SUV from Hyundai, however their market are extremely limited due to infrastructure constraints. 

Hydrogen production is also an energy-intensive process, which in turn could defeat the whole purpose of using it as a clean alternative to gasoline and diesel. 

And indeed, most hydrogen used in industrial applications today is called “gray hydrogen” , meaning it’s produced through fossil fuels, while blue hydrogen is produced through natural gas, while “green hydrogen” is produced through sustainable sources, although that remains rare and impractical. 

A promising application for hydrogen engines would be in the transport sector, both transport vehicles and huge industrial ships, which are a major culprit of CO2 emissions and are usually harder to electrify, opening the door for hydrogen technology to step in and take a prominent place. 

US stock indices stabilized on Friday as treasury yields gained ground while investors assess more data.

US producer prices rose 0.9% y/y in January, slowing down from 1% in December, while core prices rose 2.6%, unchanged from the previous reading. 

On a monthly basis, producer prices rose 0.3% in January after a 0.1% dip in December, while core prices rose 0.3% as well. 

US 20-year treasury yields rose by over 8 basis points to 4.322% after the data. 

On trading, Dow Jones stabilized at 38,768 as of 16:59 GMT, while S&P 500 rose 0.1%, or 3 points to 5033, while NASDAQ fell 0.1%, or 14 points to 15,891. 

Palladium prices rose on Friday as the dollar stabilized against most major rivals, while markets assess latest US data. 

Palladium Production 

Palladium tumbled 39% in 2023 after strong gains in 2018-2022 due to automotive demand, however it has recently been substituted by the cheaper platinum in the manufacturing of catalytic converters to reduce harmful emissions in cars. 

Also as EV cars spread in the market, the prospects for palladium worsened further. 

It means that as demand diminishes for the metal, supply remains stable, creating an imbalance.

On the other hand, platinum is on a more favorable ground for its extensive usages outside the automotive sector, including in jewelry. 

As for the stable palladium supply argument, it’s because palladium is usually mined in a basket with other metals, which curtails the ability to control the production of the metal.

South Africa and Russia produce 80% of global palladium supplies, with the rest mined in North America. 

No announcements of reduced production have been made from Russian or South African major producers so far. 

A Reuters source in a major mining company said that South Africa and America won’t pause production or reduce it. 

Otherwise, the dollar index stabilized at 104.3 as of 16:29 GMT, with a session-high at 104.6, and a low at 104.2. 

Palladium March futures rose 0.8% as of 16:30 GMT to $960.5 an ounce.