Forex

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.

Australian inflation dropped at a slower pace than anticipated, wiping out any lingering indication of rate cuts this year. Improved risk sentiment supports AUD

With the Yen at multi-decade lows, and commentary out of Tokyo suggesting enough is nearly enough, this is not a market to look away from now.