Elsewhere today, we have seen commodity currencies strengthen on the back of the lower drawdown than expected in today’s DoE crude oil Inventories, which printed a headline figure of -4203K vs Exp. +850K, with crude output falling by 1.517% to 9.413mln bpd. This saw a rebound in both WTI and Brent to see the former break above USD 48 handle and the latter to trade around USD 54.00. As a consequence, the likes of RUB, NOK and CAD all went on to trade at their highs of the day. Of note for the RUB, the Russian Central Bank rate decision is set for Friday, with the central bank expected to cut their key rate by 50bps, with some analysts forecasting as much as a 100bps cut.
After tonight’s Fed rate decision, tomorrows notable highlights include comments from RBA Governor Stevens, German unemployment and regional and national CPI, as well as a host of tier 1 data out of the US including US GDP advance reading, Core PCE and weekly jobless claims.
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EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.