- The caution gives way on Friday and Wall Street is preparing for a new rise.
- The dollar retreats from highs in decades, cuts losses in the last hour.
- Metals, cryptocurrencies and oil advance.
Stocks point to another positive day on Wall Street, in Europe they climb more than 1% on average and raw materials also rise. The dollar trims weekly gains on Friday.
Caution takes a breath
The S&P 500 rose 0.66% on Thursday and Friday aims to start with a rise of 0.70%. In Europe, the increases are more significant. The FTSE 100 climbs 1.55%, the DAX gains 1.36% and the CAC 40 advances 1.55%. Interest rate hikes are not scaring traders on Friday.
In China Inflation data was released that showed an unexpected decline, with the annual rate at 2.5%. The employment report will be published on Friday Canada.
In the foreign exchange market, the weakness of the dollar stands out, which has the worst day in days, even despite the message from the Fed chief, Powell, which on Thursday reaffirmed expectations of a rise of 75 basis points for the next meeting. The rise in stocks, the better mood in the markets and some possibility that next week’s US inflation data shows that a peak has been reached help the weakness of the dollar. The Dollar Index (DXY) is down 1% to 108.50, having reached a decade high of 110.80 on Thursday.
EUR/USD reached levels above 1.0100 and GBP/USD above 1.1600, although they later trimmed intraday gains. The death of Queen Elizabeth II prompted the Bank of England to postpone its September Monetary Policy Committee meeting for a week. Markets in the UK are operating normally.
The and in it is among the currencies that rise the most on Friday. The decline in sovereign bond yields and a kind of verbal intervention by Japanese authorities led to USD/JPY falling more than 200 pips, from the highest since 1998. The governor of the Bank of Japan met with the prime minister for the yen depreciation.
The prices of Petroleum they also recover and rise almost 2%. The Prayed approached $1730, making weekly highs and silver at $20.00. The cryptocurrencies also joined the recovery. The Bitcoin rises more than 8% and trades at $21,000.
Technical levels
Source: Fx Street
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