Following a volatile American session amid soft US inflation data and month-end flows on Thursday, markets stay relatively calm early Friday.
Nevertheless, investors remain cautious ahead of June inflation figures for the euro area. In the second half of the day, the ISM Manufacturing PMI report will be featured in the US economic docket. The US Dollar Index recovers modestly toward 105.00 and the US stock index futures trade deep in negative territory.
Earlier in the day, the data from China showed that the Caixin Manufacturing PMI improved to 51.7 in June from 48.1 in May but this print doesn’t seem to be having a positive impact on market sentiment in the early European session.
Meanwhile, cure oil prices fell sharply after OPEC+ decided to stick to its current plan of increasing the output by 648,000 barrels per day in August. The group refrained from discussing the output strategy from September. The barrel of West Texas Intermediate (WTI), which fell more than 3% on Thursday, was last seen losing 0.8% on the day at $105.15.
In the US, the Commodity Futures Trading Commission has warned against the proliferation of binary options on unregistered trading platforms. CME’s exchanges are CFTC-registered and the dominant venue for US-listed derivatives. The contracts will be listed pending regulatory review.
EUR/USD
Staged a decisive rebound during the American session and ended up closing in positive territory on Thursday. The pair stays on the back foot early Friday and edges lower toward 1.0450.
GBP/USD
Registered small daily gains on Thursday but turned south early Friday. The pair was last seen retreating toward 1.2100.
USD/JPY
fell sharply on Thursday amid falling US Treasury bond yields. With the benchmark 10-year US T-bond yield losing nearly 2% below 3% so far on the day, the pair trades in negative territory below 135.00 in the European morning.
Gold and Crypto
Failed to take advantage of falling yields and closed the fourth straight day in negative territory. Sellers continue to dominate XAU/USD’s action early Friday with the pair trading below $1,800 for the first time since mid-May.
Although Bitcoin climbed above $20,000 on Friday after having dropped below that level on Thursday, it failed to preserve its recovery momentum and was last seen trading near $19,300. Ethereum continues to trade within a touching distance of $1,000.
