The dollar index (DXY00) decreased on Friday by -0.41 %. The dollar was under pressure after Friday’s report on the PCE Core August price index, the preferred inflation scale of the Federal Reserve, in expectations, which may allow the Federal Reserve to continue to reduce monetary policy. The dollar extended its losses on Friday after reviewing the consumer morale index at the University of Michigan in September unexpectedly to the lowest level in four months.
The losses in the dollar were limited, as the best reports on Friday showed that it is expected to have personal spending on Aug and the income of the economic power that supports the dollar. Also, the Hakash comments on Friday from the Federal Reserve Chairman at Richmond Tom Parkin were optimistic against the dollar, as he stated that the uncertainty that spread in economic expectations earlier in the year began to raise American companies.
Personal spending in the United States increased by +0.6 %/m, stronger than +0.5 % m/m and the largest increase in 5 months. Aug +0.4 % m/m, stronger than +0.3 % m/m.
The PCE CORE price index in the United States, the preferred scale of inflation in the Federal Reserve, +0.2 % M/M and +2.9 % Y/Y, directly on expectations.
The Consumer Feelings Index at the University of Michigan in the United States was unexpectedly reviewed to the lowest level in 45.1 months, i.e. weaker than the non -change forecast at 55.4.
Inflationes at the University of Michigan in the United States have been reviewed for one year to 4.7 % for the previous amount previously. Also, inflation forecasts were reviewed from 5 to 10 September to the bottom to 3.7 % from 3.9 % former amount.
The President of the Federal Reserve, Richmond Tom Parkin, said that the uncertainty that erupted in economic expectations earlier in the year began raising American companies and sees a limited danger to further deterioration in employment and inflation.
Market pricing a 90 % opportunity to reduce -25 basis points at the next FOMC meeting on 28-29 October.
EUR/USD (^EURUSD) increased on Friday by +0.32 %. On Friday, the dollar was supportive of the euro. Also, the monthly report on the European Central Bank on inflation expectations was stronger than expected, Haksh for the European Central Bank policy, and the euro.
The euro also enjoys support from the central bank, as the markets view the European Central Bank that it has been largely completed with the price -cut course, while the Federal Reserve is expected to reduce prices by two times by the end of this year.
The consumer price index expected increased for one year in August unexpectedly increased to 2.8 % of 2.6 % in July, stronger than a decrease to 2.5 %. The 3 -year consumer price index forecasts of ECB Aug did not change by 2.5 %, stronger than a decrease to 2.4 %.
The bares are captured at a chance of 1 % of the average -25 basis points by the European Central Bank at the Policy meeting on October 30.
USD/JPY (^USDJPY) fell on Friday by -0.20 %. The yen recovered from its lowest level over 1.75 months against the dollar on Friday and rose with the weakness of the dollar in the expected US inflation report. The yen initially decreased on Friday after the SEP consumer price index in Tokyo, Japan, rose, is a factor of BOJ policy.
The AUG consumer price index in Japan has not changed at +2.5 % on an annual basis, that is, weaker than the increase expectations to +2.8 % on an annual basis. Sep Tokyo CPI Food-Fresh Food and Energy fell to +2.5 % on an annual basis of +3.0 % year on an annual basis in August, that is, weaker than +2.9 % on an annual basis.
Gold was closed in December (GCZ25) on Friday +37.90 (+1.01 %), and closed silver in December (Siz25) +1.542 (+3.42 %). The prices of precious metals rose sharply on Friday, with silver spreading in December a high and closer contract (U25), which was published in 14 years.
The precious metals settled sharply on Friday due to the weakest dollar. Also, on Friday, a benign inflation report on PCE’s basic prices in the United States may continue to reduce interest rates, a bullish factor for minerals. Silver prices have also received support from the Personal spending report for Agnes, a positive factor for economic growth and industrial minerals.
The precious metals are still receiving safe support for the uncertainty due to the uncertainty associated with the US tariffs, the US government’s possible closure next week, and the Federal Reserve’s expectations to reduce interest rates by 50 other basis points this year. Also, President Trump’s attacks on the independence of the Federal Reserve strengthens the demand for gold, as he tries to shoot the wallet feeding on the governor. In addition, Stephen Miran’s intention to be a ruler of the Federal Reserve while still holds his job at the White House of Economic Counselors contributes to uncertainty. Finally, geopolitical risks and world trade tensions have strengthened the demand for safe -term for precious metals.
The noisy comments on Friday from the President of the Federal Reserve, Richmond Tom Parkin, were dumping gold, saying that he sees a limited danger to increase the deterioration of employment and inflation. Also, today the shares have made some safe demand for precious metals.
The prices of precious metals continue to obtain support from purchasing funds from precious metal investment funds. Gold biases in the investment funds circulated to the highest level in about 3 years on Thursday, and Silver Holdings in ETFS rose to the highest level in 3 years on Wednesday.
On the date of publication, Rich Asplund did not have positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article are only for media purposes. This article was originally published on Barchart.com
