Here is what you need to know on Friday, July 14:
The US Dollar (USD) continued to weaken against its rivals throughout Thursday and in the Asian on Friday. After having touched its weakest level in 15 months at 99.57, however, the US Dollar Index (DXY) started to recover toward 100.00. Import/Export Price Index data will be featured in the US economic docket alongside the University of Michigan's (UoM) Consumer Sentiment Index. During the European trading hours, Eurostat will release Trade Balance data for May.
Following Wednesday soft consumer inflation data, the US Bureau of Labor Statistics reported on Thursday that the Producer Price Index (PPI) rose only 0.1% on a yearly basis in June. Wall Street's main indexes opened higher after this data and the 10-year US Treasury bond yield extended its slide, losing over 2% for the second straight day. In turn, the DXY turned south and broke below 100.00. Although Federal Reserve (Fed) policymakers delivered hawkish comments, the USD failed to show resilience. The DXY is down more than 2% this week and remains on track to register its largest one-week loss since November.
Earlier in the day, Australian Prime Minister Anthony Albanese and Treasurer Jim Chalmers called an emergency press conference to announce that Michele Bullock will be appointed as the Governor of the Reserve Bank of Australia (RBA) when Philip Lowe's term expires in September. This development had little to no impact on AUD/USD and the pair was last seen trading in negative territory below 0.6900.
EUR/USD climbed to its highest level in 16 months near 1.1250 in the Asian session on Friday before retreating to the 1.1200 area. The pair is up more than 200 pips this week.
GBP/USD touched its strongest level since April 2022 at 1.3146 but lost its bullish momentum heading into the European session. At the time of press, the pair was down 0.3% on the day, trading a few pips below 1.3100.
The data from Japan showed early Friday that Industrial Production contracted by 2.2% on a monthly basis in May. Capacity Utilization also declined 6.3% in the same period. After having slumped to its weakest level in a month below 137.50, USD/JPY reversed its direction and was last seen trading in postive territory at around 138.50.
Gold price struggled to capitalize on the broad USD weakness and registered small gains on Thursday. XAU/USD stays on the back foot early Friday and retreats toward $1,950. Following this week's sharp decline, the 10-year US Treasury bond yield is up nearly 1% on the day near 3.8% in the European morning, making it difficult for the pair to hold its ground.
Following a consolidation phase earlier in the week, Bitcoin rose above $31,000 on Thursday. BTC/USD stays relatively quiet at around $31,300 early Friday. Ethereum gathered bullish momentum and gained more than 7% on Thursday. ETH/USD was last seen moving sideways at around $2,000.
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