- 10-year US Treasury bond yield stays little changed on Friday.
- US Dollar Index clings to daily gains near mid-98s.
- US annual core PCE Price Index is expected to remain unchanged at 1.6% in July.
After closing the previous two days in the positive territory supported by risk-on flows, the USD/JPY pair had gone into a consolidation phase and been having a tough time setting its next short-term direction ahead of key macroeconomic data releases from the United States. As of writing, the pair was down 0.14% on the day at 106.33.
The upbeat market sentiment in the second half of the week amid rising hopes of the US-China continuing talks without escalating the trade conflict any further made it difficult for safe-havens to find demand. The 30-year US Treasury bond yield, which slumped to a record low earlier in the week, stage a decisive recovery and major global equity indexes posted strong gains. As of writing, the S&P 500 Futures was up 0.6% on the day, suggesting that Wall Street will extend its rally into a third day on Friday.
Eyes on key US data
Meanwhile, ahead of today's key macroeconomic data releases, the US Dollar Index is staying quiet near the multi-week highs that it set at 98.61 earlier in the day.
The US Bureau of Economic ANalysis (BEA) today will release the Personal Consumption Expenditures (PCE) Price Index, the Fed's preferred gauge of inflation. Markets expect the core version of the data to remain unchanged at 1.6% in July. A stronger-than-expected reading could weigh on expectations of the Fed opting out for an aggressive rate cut in July and provide a boost to the Greenback. Personal spending, personal income, and consumer confidence data will also be featured in the US economic docket on Friday.
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
USD/JPY jumps above 156.00 on BoJ's steady policy
USD/JPY has come under intense buying pressure, surging past 156.00 after the Bank of Japan kept the key rate unchanged but tweaked its policy statement. The BoJ maintained its fiscal year 2024 and 2025 core inflation forecasts, disappointing the Japanese Yen buyers.
AUD/USD consolidates gains above 0.6500 after Australian PPI data
AUD/USD is consolidating gains above 0.6500 in Asian trading on Friday. The pair capitalizes on an annual increase in Australian PPI data. Meanwhile, a softer US Dollar and improving market mood also underpin the Aussie ahead of the US PCE inflation data.
Gold price flatlines as traders look to US PCE Price Index for some meaningful impetus
Gold price lacks any firm intraday direction and is influenced by a combination of diverging forces. The weaker US GDP print and a rise in US inflation benefit the metal amid subdued USD demand. Hawkish Fed expectations cap the upside as traders await the release of the US PCE Price Index.
Stripe looks to bring back crypto payments as stablecoin market cap hits all-time high
Stripe announced on Thursday that it would add support for USDC stablecoin, as the stablecoin market exploded in March, according to reports by Cryptocompare.
US economy: Slower growth with stronger inflation
The US Dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.