ING strategists Warren Patterson and Ewa Manthey note that Oil rebounded after a vessel was struck in the Persian Gulf, but they stress that price momentum remains to the downside as flows through the Strait of Hormuz recover.
The GBP/JPY cross struggles to capitalize on the previous day's modest recovery gains and seesaws between tepid gains/minor losses through the early European session on Friday. Spot prices currently trade just below mid-213.00s, nearly unchanged for the day amid mixed fundamental cues.
EUR/CAD remains flat after paring intraday losses, trading around 1.6150 during the European hours on Friday.
MUFG’s Lloyd Chan notes that strong United States (US macro data continue to support a high-for-longer US rates environment, with Personal Consumption Expenditures (PCE) Price Index inflation and Gross Domestic Product (GDP) both firm.
The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, currently trades near 101.40 during the early European trading hours on Friday.
Dow Jones futures decline 0.13%, trading near 52,270 during the early European hours on Friday. Meanwhile, S&P 500 futures fall by 0.60% to near 7,380, and Nasdaq 100 futures plunge 1.29%, trading near 29,350 at the time of writing.
Here is what you need to know on Friday, June 26:
Volkmar Baur at Commerzbank highlights that Greater Tokyo inflation has edged up and is now just below 2%, a positive backdrop for the Japanese Yen. With limited second-round effects from Oil and signs of structural normalization, the Bank of Japan can keep normalizing policy.
Danske Research Team highlights ongoing sector and regional rotation in global equities, with European and Asian stocks advancing while US equities slipped.
The Euro (EUR) is trading practically flat, around 0.8615 against the British Pound on Friday, showing some signs of bottoming after bouncing from 0.8600 lows on Wednesday.
Sweden Producer Price Index (YoY) rose from previous 4.7% to 6.6% in May
United Overseas Bank’s Quek Ser Leang and Lee Sue Ann highlight that EUR/USD has rebounded from deeply oversold levels after dropping to 1.1324, with price action now viewed as consolidation in a slightly higher 1.1345–1.1395 band.
