Forexlive Americas FX news wrap: Hot UMich inflation expectations cool Fed rate cut talk

Markets:

• WTI crude oil up 88-cents to $62.50
• US 10-year yields down 2.3 bps to 4.43%
• Gold down $46 to $3193
• S&P 500 up 0.6%
• USD leads, CHF lags

The FX market was lacklustre on Friday with no actual driving power behind any of the strikes. An earlier report about Japan balking at US commerce negotiations did not get a lot traction and the market was middling.

It will definitely sprang to life after the UMich report, which as soon as once more confirmed a dismal studying on client confidence however it was possible the continued surge in inflation expectations that caught the market’s consideration. That reversed a drop in yields and pared a few of the Fed lower pricing seen available in the market.

With that, the US greenback discovered some first rate bids and EUR/USD sank to 1.1131 from 1.1200. It was a broad transfer within the greenback that included an increase in USD/JPY to 146.05 from 145.45.

Because the day wore on, some US greenback sellers returned however the strikes had been modest.

The larger conclusion from markets this week is that the commerce warfare has possible peaked, and I am on board with that pondering. That does not imply will probably be simple from right here. It was a refreshingly quiet week within the latter half as Trump went to the Center East and that helped to elevate danger property.

It is in all probability an excessive amount of to ask for extra of the identical subsequent week.

Have a fantastic weekend.