Friday Brings Key PMIs and US Inflation: Dollar Strong, Yen Weak

Hello traders, and welcome to Friday, a day that finally brings us a busy macroeconomic calendar after several quiet sessions. We started the day with retail sales from the UK, which came in better than expected, initially giving a boost to the British pound. However, those gains proved short-lived, as the pound quickly gave them back ahead of the upcoming key data releases. Today is PMI day, and we’ll be getting manufacturing and services PMI readings from France, Germany, the Eurozone, the UK, and the US. In addition, traders will also be closely watching US inflation (CPI) data later in the session — a release that could easily shift sentiment across major asset classes.

The earnings calendar is also lively. Earlier this week, on Wednesday, we had Tesla’s earnings, which were mixed, leading to a –4% open on Thursday but a spectacular reversal that saw the stock close +2% higher by the end of the day — a clear show of buyer strength. Thursday’s highlights included T-Mobile, which reported better-than-expected earnings before the market opened, but still finished 3% lower, showing that sentiment remains cautious even with strong numbers. Intel, on the other hand, beat expectations and published better earnings after market close, and pre-market data today shows Intel up more than 8%, marking one of the best reactions of this earnings season so far.

On the market side, we’re seeing a continuation of the recovery on indices. Equities are pushing higher, extending the rebound from earlier in the week. The currency market shows a clear pattern of strength in the American dollar and the Swiss franc, while the Japanese yen continues to weaken sharply. Among European currencies, the euro and the pound are showing some intraday softness, although volatility is likely to pick up after the release of the PMIs.

As for commodities, it’s been a great week for oil. WTI crude is up around 7% for the week, continuing its bullish recovery and holding above key technical supports. However, on the other side of the spectrum, precious metals are struggling. Both gold and silver are under pressure, with gold trading near daily lows ahead of the European session. After the recent drop, traders are now openly asking whether the gold bubble has burst, or if this is just a healthy correction before another leg up. The next few sessions will likely provide the answer.

Finally, turning to cryptocurrencies, Friday brings a welcome rebound. After a tough week, Bitcoin and Ethereum are attempting to defend local supports and push higher. The move remains cautious, but with risk sentiment improving elsewhere, crypto traders are hoping that the worst of the correction may be behind them — at least for now.

Source: https://www.axiory.com/analytics/market-news/friday-brings-key-pmis-and-us-inflation-dollar-str