Banco de México (Banxico) is projected to continue its easing cycle next week, despite the latest inflation reports in Mexico suggesting that risks are tilted to the upside. Inflation in May came above the bank’s 3% target, increasing concerns that the central bank would continue to reduce rates.
The GBP/JPY recovers and rallies for the second straight day, is up 0.43%, trades at 196.59, shy of reclaiming the 197.00, poised to finish the week with gains of over 0.40%. Market mood remains sour, but it was not an excuse for buyers to lift the cross-pair to fresh three-day highs.
The Euro recovers some ground against the US Dollar on Friday and is set to finish the week virtually flat as risk appetite deteriorates. This is taking place despite US President Donald Trump delaying a military intervention in the Israel–Iran conflict.
Silver (XAG/USD) remains under pressure for a third day in a row on Friday, retreating further after US President Donald Trump announced he would hold off for two weeks before deciding whether the US should step into the escalating Iran–Israel standoff.
The Japanese Yen (JPY) remains under pressure against the US Dollar (USD) on Friday, extending its losing streak despite a subdued Greenback and shrugging off hotter-than-expected inflation figures that highlight persistent price pressures in Japan.
The Pound Sterling registers minimal losses during the North American session, after UK Retail Sales data disappointed investors, while the Greenback recovers some ground. Currently, the GBP/USD is trading at 1.3456, down 0.07%.
The US Dollar Index (DXY) is trading sideways on Friday, holding above 98.00, as markets digest this week’s key geopolitical and monetary policy developments.
In its Monetary Policy Report to Congress, published on Friday, the Federal Reserve said that inflation is somewhat elevated, while the job market remains in a solid shape, per Reuters.
The Euro (EUR)edges up modestly against the US Dollar (USD) on Friday, capitalizing on a softer Greenback as traders digest a cautious geopolitical signal from the White House.
The Euro (EUR) edges lower against the British Pound (GBP) on Friday, unable to capitalize on disappointing UK retail sales data released earlier in the day.
In an interview with CNBC on Friday, Federal Reserve (Fed) Governor Christopher Waller said that the Fed is in a position to cut the policy rate as early as July, per Reuters.
The Indian Rupee (INR) snaps its three-day losing run against the US Dollar (USD) on Friday, recovering modestly after hitting a three-month low the previous day.
The Platinum price continued to soar this week, reaching its highest level in almost 11 years yesterday at $1,350 per troy ounce, Commerzbank's commodity analyst Carsten Fritsch notes.
"This week, the World Gold Council published its annual survey among central banks on their assessment of Gold reserves and future Gold purchases, Commerzbank's commodity analyst Carsten Fritsch notes.
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