Silver price (XAG/USD) wobbles in a tight range around $33.00 during North American trading hours on Friday. The white metal remains almost flat despite a substantial weakness in the US Dollar (USD).
Before committing to significant investments or other choices, US businesses were looking for continuity in trade policy, Chicago Fed President Austan Goolsbee said.
Generally, investors are concerned with policy content. Fiscal changes adjust the relative performance of different sectors of the economy, and markets react accordingly. But the current US administration has added two complications.
The Mexican Peso (MXN) remains steady against the US Dollar (USD) despite US President Donald Trump’s threat of sweeping tariffs on the European Union (EU).
The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against six major currencies, dips further on Friday and erases the previous day’s recovery, trading near 99.20 at the time of writing.
In a post published on Truth Social on Friday, United States (US) President Donald Trump said that he is recommending a "straight 50% tariff" on imports from the European Union.
The price of Gold has climbed back above the $3,300 per troy ounce mark in recent days, Commerzbank's Head of FX and Commodity Research Thu Lan Nguyen reports.
The Japanese Yen (JPY) continues to appreciate against the US Dollar (USD), extending gains after Japan’s core consumer inflation surprised to the upside.
Pound Sterling (GBP) gains are extending to near 1.35, leaving spot trading at its highest since early 2022, Scotiabank's Chief FX Strategist Shaun Osborne notes.
Canadian Dollar (CAD) gains are lagging most of its peers on the day and over the week but a 1%-plus rise since Monday so far nevertheless puts the CAD on course to extend its rebound.
Gold is back in demand amid rising geopolitical uncertainty and a weakening US dollar, with prices climbing above $3,300 per ounce. However, upside potential may be limited as high prices weigh on physical demand in Asia, Commerzbank's commodity analyst Barbara Lambrecht notes.
With the US long weekend looming and no major data releases to deal with today, it’s likely to be a fairly quiet session, Scotiabank's Chief FX Strategist Shaun Osborne notes.
Further US Dollar (USD) declines are not ruled out, but deeply oversold conditions and tentative slowing of downward momentum could first lead to consolidation, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
The Euro (EUR) remains well-supported on dips, with spot trading close to a cent above yesterday’s session low, Scotiabank's Chief FX Strategist Shaun Osborne notes.
The NZD/USD pair surges almost 1% to near 0.5960 during European trading hours on Friday. The Kiwi pair soars as the New Zealand Dollar (NZD) outperforms its peers on stronger-than-projected New Zealand (NZ) Q1 Retail Sales data.
European Central Bank (ECB) chief economist Philip Lane said on Friday that they are confident that the service inflation in the Eurozone will continue to decline, per Reuters.
In his latest blog post, US economist Paul Krugman (winner of the 2008 Nobel Prize in Economics) shows one of my favorite graphs: the net international investment position (IIP) of the US, in other words, the net debt (when negative) of the US economy vis-à-vis the rest of the world.
Australian Dollar (AUD) is under mild downward pressure; it could edge lower to 0.6395. In the longer run, outlook is mixed; AUD is likely to trade in a range between 0.6370 and 0.6480, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
The AUD/USD pair is up 0.8% around 0.6460 during European trading hours on Friday. The Aussie pair strengthens as antipodeans perform strongly, and escalating concerns over the United States (US) fiscal health continue to batter the US Dollar (USD).
Earlier this week, we speculated over the low probability, high impact event of a change in FX language in this week's closing statement from the G7 meeting of Finance Ministers and Central Bank governors in Canada, ING's FX analyst Chris Turner notes.
US natural gas prices declined sharply as storage data surprised to the upside, reinforcing concerns about near-term oversupply and weighing on NYMEX Henry Hub futures, ING's commodity experts Ewa Manthey and Warren Patterson note.
Momentum indicators still point to Pound Sterling (GBP) upside; the next technical target is at 1.3500, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
The oil market is under renewed pressure as noise builds around what OPEC+ will do with their July output levels, ING's commodity experts Ewa Manthey and Warren Patterson note.
EUR/USD gives up some of its initial gains during North American trading hours on Friday after revisiting the two-week high around 1.1370 earlier in the day. Still, the major currency pair is up around 0.5% near 1.1330.
Markets had already doubted whether the Bank of Japan (BoJ) would raise its key interest rate again in July. Inflation figures for April published this morning are likely to increase the dilemma for the BoJ. After all, inflation remains above the BoJ's target, mainly due to energy and food prices.
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