Societe Generale’s team highlights a sharp reversal in Gold, with prices down 20% year-to-date and over 11% this month, undermining the Dollar debasement narrative.
Silver prices (XAG/USD) rose on Friday, according to FXStreet data. Silver trades at $58.19 per troy ounce, up 0.56% from the $57.87 it cost on Thursday.
Societe Generale strategists notes that the Indian Rupee (INR) traded broadly flat over the week but outperformed regional peers thanks to debt portfolio inflows. They highlight that broad US Dollar (USD) strength overshadowed moves in Gold and Brent.
Crude Oil prices edge lower on Friday, with the US benchmark West Texas Intermediate (WTI) barrel changing hands at $69.65 at the time of writing. This is the lowest price since February 27, one day before the US and Israel launched a joint attack on Iran.
DBS Group Research strategist Philip Wee notes that the US Dollar Index (DXY) has seen its first post-FOMC decline as US inflation data suggest a possible peak.
Rabobank strategists Christian Lawrence and Molly Schwartz note that Banxico’s June 25 decision highlighted an unchanged policy rate at 6.50%, in line with consensus. They expect Banxico to stay on hold through year-end, mirroring their stance on the Bank of Canada (BoC) and Federal Reserve (Fed).
The USD/JPY pair continues with its struggle to reclaim the 162.00 mark on Friday and retreats slightly from the vicinity of a 40-year peak.
Italy Business Confidence meets forecasts (88.4) in June
Italy Consumer Confidence registered at 92.4, below expectations (94.5) in June
Francesco Pesole at ING highlights that EUR/USD is seeking stabilisation around 1.1350–1.1400, with Eurozone-specific inputs secondary in the short term.
Gold (XAU/USD) struggles to build on its intraday bounce of around $50 from the $3,983-$3982 region and flat lines below the $4,050 level during the first half of the European session on Friday.
The Japanese Yen (JPY) is finding a firmer fundamental floor as inflation in the Greater Tokyo Area edges closer to the Bank of Japan’s (BoJ) 2% target. While the Yen has shown recent stability against the US Dollar, it remains locked in a high-stakes tug-of-war.
