Metals Shine, Oil Stalls as Friday Trading Begins

Hello traders, welcome to Friday. We’re starting the European session with a cautious tone across global markets following a mixed but eventful Thursday. The key highlight from yesterday was the US GDP, which came in above expectations at 2.4%, surpassing the forecast of 2.3%. That reinforced the idea of a resilient US economy and initially supported the US Dollar, but the reaction was somewhat muted as traders shifted focus toward Friday’s key data.

Another major market mover on Thursday was the announcement from Donald Trump, who confirmed new tariffs on foreign-made cars. That news weighed heavily on automotive stocks, especially in Europe and Asia, and brought back some concerns about renewed trade tensions.

Moving to Friday, the day began with more surprises: Tokyo Core CPI came in at 2.4% versus 2.2% expected, supporting a rebound in the Japanese Yen, which had been one of the weakest currencies all week. We also got a strong retail sales number from the UK, which showed a 1.0% gain compared to the expected -0.3%, giving a lift to the British Pound in early trading.

As we open the European session, futures are in the red, suggesting a cautious mood despite some positive economic prints. Indices are struggling, and the optimism seen earlier in the week is fading a bit, especially in Europe and Asia, where markets are down for the week. US indices are holding up better, but their weekly gains are marginal and vulnerable heading into the weekend.

Oil is taking a breather this morning after a strong week, with a small bearish correction, while precious metals remain firmly bullish, continuing to push toward new long-term highs.

Still ahead today: we’re waiting on two important prints — GDP from Canada and the Core PCE Price Index from the US, expected at 0.3%. Both could have a significant impact on currency and equity markets heading into the weekend.

Source: https://www.axiory.com/analytics/market-news/metals-shine-oil-stalls-as-friday-trading-begins