The Federal Reserve released its monetary policy report, in which the US central bank acknowledged that inflation remains elevated and that the labour market is broadly stable, a signal that the price stability goal hasn’t been achieved.
Silver (XAG/USD) trades slightly lower on Friday, hovering around $59.90 at the time of writing, down a modest 0.08% on the day.
NZD/USD remains on the front foot on Friday and is heading for a second consecutive weekly gain after the Reserve Bank of New Zealand (RBNZ) raised the Official Cash Rate (OCR) by 25 basis points (bps) on Wednesday and signaled that further policy tightening may be needed, boosting the New Zealand D
UOB’s Quek Ser Leang notes USD/SGD remains range-bound, with intraday action expected between 1.2905 and 1.2940 as recent price moves provided no fresh directional clues.
AUD/USD advances toward the 0.6960 area on Friday, supported by a softer US Dollar (USD) and renewed strength in the Chinese Yuan (CNY). The pair continues to recover on the four-hour chart, although escalating tensions between the United States (US) and Iran are limiting broader risk appetite.
Gold (XAU/USD) trades on the back foot on Friday, struggling to build on the previous day's gains and heading for a weekly loss as renewed hostilities in the Middle East have revived fears of energy-driven inflation and Federal Reserve (Fed) interest rate hikes.
EUR/USD trims gains on Friday as the US Dollar (USD) rebounds while traders digest the latest developments in the Middle East. At the time of writing, the pair is trading around 1.1433, easing from a one-week high of 1.1460 touched earlier during the Asian session.
USD/JPY falls toward 161.80 on Friday, down 0.37% at the time of writing, as the Japanese Yen (JPY) benefits from an unexpected shift in the Japanese government's stance on domestic asset allocation.
OCBC strategists Christopher Wong and Sim Moh Siong note that the European Central Bank's (ECB) June minutes justified the latest rate hike while keeping flexibility on future moves. Since then, Oil prices have fallen sharply and June Consumer Price Index (CPI) surprised on the downside.
DBS economists Radhika Rao and Mo Ji project China’s Gross Domestic Product (GDP) growth to slow from 5.0% year-on-year in Q1 to 4.8% in Q2.
Royal Bank of Canada (RBC) economist Nathan Janzen notes that Canadian labour markets showed further signs of stabilisation in June, following a stronger improvement in May. Employment rose modestly, while per-worker conditions improved and the unemployment rate edged down to 6.5%.
ING economists Deepali Bhargava and Lynn Song project India’s consumer inflation to edge up to 4.2% year-on-year in June, while wholesale inflation moderates to 9%.
The Canadian Dollar (CAD) strengthens against the US Dollar (USD) on Friday after stronger-than-expected Canadian employment data. At the time of writing, USD/CAD is trading around 1.4160 after falling to a more than two-week low of 1.4136.
Societe Generale analysts Dev Ashish and Brendan McKenna note that Mexico’s June inflation data surprised to the downside, with headline and core measures moving close to Banxico’s target range.
Qatar has dispatched negotiators to Iran for meetings with Iranian officials in a renewed diplomatic effort to de-escalate tensions and create conditions for broader negotiations to continue, according to a Reuters report citing a source familiar with the matter.
West Texas Intermediate (WTI) Oil trades around $72 at the time of writing on Friday, up 0.42% on the day, but remains in a consolidation phase after reaching a more than two-week high earlier this week.
OCBC strategists Christopher Wong and Sim Moh Siong note that the New Zealand Dollar (NZD) outperformed after stronger manufacturing data and hawkish Reserve Bank of New Zealand (RBNZ) commentary reinforced expectations for further tightening.
Royal Bank of Canada (RBC) analysts Abbey Xu and Rachel Battaglia report that June spending by RBC Canadian cardholders remained relatively stable, with core retail sales up modestly. Discretionary goods led gains, while essential spending including gasoline also contributed.
GBP/JPY trades under pressure on Friday after comments from Japan's Finance Minister Satsuki Katayama boosted the Japanese Yen (JPY). At the time of writing, the cross is trading around 217.10, down 0.30% on the day.
Commerzbank economists Dr. Jörg Krämer and Bernd Weidensteiner argue that the AI-driven investment surge in US high-tech and IT is substantial but not yet excessive compared with past booms.
Statistics Canada reported on Friday that the Unemployment Rate decreased to 6.5% in June, below market expectations and the previous print of 6.6%.
Wells Fargo economists Tom Porcelli and Sarah House discuss upcoming BEA changes to the Personal Consumption Expenditures (PCE) Price Index that will affect data from 2021 onward.
OCBC strategists Christopher Wong and Sim Moh Siong observe that the Indian Rupee (INR) faced depreciation pressure as Oil and geopolitics resurfaced, pushing USD/INR towards a one‑month high.
TD Macro Research expects the Canadian labour market to soften in June, with employment unchanged versus market expectations for a 10k gain after May’s 87.8k surge.
The Euro (EUR) has given away most of the daily gains against the US Dollar (USD) on Friday, returning to the 1.1430 area from session highs at 1.1475, which leaves the pair practically flat on the daily chart.
Silver price (XAG/USD) surrenders its early gains and slides 0.73% to near $59.50 during the European trading session on Friday. The white metal turns negative amid fears that the next monetary policy move by the Federal Reserve (Fed) will be on the upside.
AUD/USD trades around 0.6950 on Friday at the time of writing, up 0.10% on the day after reaching a more than two-week high earlier in the day. The pair gives back part of its gains as investors remain caught between a weaker US Dollar (USD) and lingering factors supporting the Greenback.
Societe Generale’s Kenneth Broux notes EUR/USD has rebounded after forming an interim low near 1.1325 and moved back into its prior range, signalling limited follow-through on the earlier breakdown.
Brown Brothers Harriman’s (BBH) Elias Haddad describes USD/CAD trading just below 1.4200 and broadly aligned with US-Canada two-year yield spreads ahead of June labor data.
The Canadian Dollar (CAD) is outperforming the US Dollar in the short term, pulling the USD/CAD pair down from recent multi-month highs. This corrective move comes at a crucial juncture, as global markets look ahead to the Bank of Canada's (BoC) upcoming policy meeting.
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