Risk markets pushed higher over the week, spurred on by a lull in Israel/Iran hostilities. Next week the FOMC and tech heavyweights Amazon and Apple will dominate risk sentiment.
Gold rose last week but the size of the recent gains have tapered off as risk sentiment recovered. Will elevated rates weigh on gold or will growth concerns provide support?
Year-on year US PCE data followed on from yesterday’s quarterly surprises to give the FOMC something to think about when they meet next week to set interest rates
The Japanese Yen continued to fall to new multi-decade lows against a range of currencies after the BoJ left monetary policy unchanged. Weaker-than-expected Tokyo inflation the driver of the latest move.
Gold and silver have pulled back from their respective highs, looking for the next catalyst. With risk sentiment improving, precious metals may find support from a softer USD
US crude inventories fell, but much of this was down to oil exports rather than strong local demand.
The US economy expanded by 1.6% q/q in the first three months of the year, missing estimates of 2.5% and down from 3.4% in Q4 2023. US dollar firms after PCE figures nudge higher.
Yield curve inversion has historically been associated with economic slowdowns and recessions in the US.
The yen continues to depreciate, adding pressure to Japanese authorities to respond. Will recent wage growth and yen weakness bring the inflation target within reach?
The Euro has been buffeted over the last few sessions against the US dollar, while EUR/GBP has jumped on recent Sterling weakness.