Trading news

Gold (XAU/USD) edges lower on Friday, heading for a second straight weekly decline as higher-for-longer interest rate expectations continue to dominate price action amid rising inflation concerns driven by elevated Oil prices.

Minneapolis Federal Reserve President Neel Kashkari explained on Friday that he dissented at the April policy meeting because the uncertainty around the Strait of Hormuz means the Fed should acknowledge the risk of rate hikes in its statement.

Bank of England (BoE) Chief Economist Huw Pill said on Friday that a tightening in financial conditions seem as a reasonable response to the inflation risk from the US-Iran war, per Reuters.

The United States (US) Institute of Supply Management (ISM) Manufacturing Purchasing Managers’ Index (PMI) data for April is scheduled to be published today at 14:00 GMT.

The Pound (GBP) has turned positive on the daily chart against the Japanese Yen (JPY) on Friday, trading at levels a few pips above 213.00 at the time of writing, up from session lows at 211.78 earlier in the day.

The Japanese Yen (JPY) gives up gains recorded in the early European trade against the US Dollar (USD) during the early North American trading session on Friday. The USD/JPY pair rebounds to near 156.55 after sliding to around 155.50, but is still marginally down.

India Bank Loan Growth remains unchanged at 15% in April 20

India FX Reserves, USD: $698.49B (April 20) vs previous $703.31B

European Central Bank (ECB) governing council member and Governor of the Central Bank of Ireland, Gabriel Makhlouf, said in his blog ⁠on the Irish central bank's website on Friday that he will be vigilant to the indirect effects of higher energy prices on production, ​transportation, and services, R

Rabobank’s RaboResearch notes the Bank of England kept rates unchanged while striking an “alert but careful” tone, with Governor Bailey describing an “active hold” that balances persistent inflation risks against softer activity and employment.

MUFG’s Derek Halpenny argues that recent Japanese authorities’ action around the 160 level in USD/JPY likely reflects renewed intervention, with the move seen as buying time for the BoJ and government as they face Middle East uncertainty and domestic cost-of-living concerns.

West Texas Intermediate (WTI), futures on NYMEX, trades calmly around $102.25 during the European trading session on Friday. The Oil price has turned flat after an almost two-week-long rally hit a pause near $107.35 on Thursday.

Silver (XAG/USD) is trading within the lower ranges of the $73.00s during Friday’s European session following rejection at a previous support area around $75.00 earlier on the day.

ING’s Chris Turner describes Sterling price action as confusing after the Bank of England’s latest communication. While he sees the BoE laying groundwork for a June hike, some investors interpreted the message as dovish, possibly due to oil-driven declines in GBP rates.

The Pound Sterling (GBP) ticks lower against its major currency peers, trading marginally down to near 1.3590 against the US Dollar (USD) during the European trading session on Friday.

Silver prices (XAG/USD) fell on Friday, according to FXStreet data. Silver trades at $73.20 per troy ounce, down 0.76% from the $73.76 it cost on Thursday.

The Euro (EUR) edges up against the British Pound (GBP) on Friday, trading at the 0.8630 area at the time of writing after dropping from Thursday’s highs at 0.8670, but remains dangerously close to the eight-month lows of 0.8610.

Chris Turner at ING notes that recent European Central Bank communication had limited impact on Euro rates and the Euro, with markets still pricing a June rate hike near 90%.

ING’s Chris Turner argues Japanese authorities likely intervened to push USD/JPY back below 160, echoing the 2024 pattern of sizeable FX sales around late April and early May.

The USD/CAD pair extends its sideways consolidative price move through the first half of the European session and currently trades around the 1.3575-1.3570 region, or its lowest level since March 11.