Spreadex Market Update
USD Rally Continues Ahead of NFP Following Bumper ADP Print
Equities Remain Mixed Ahead of US Labour Data
Equities prices continue to see mixed action as we round out the week. US stocks have been among the worst performers, dragged down by fresh strength in the US Dollar, along with Asian equities. In Europe, the Dax has been higher across the week, helped by lower energy prices and better eurozone data, though the rallied stalled yesterday as USD ticked up. The FTSE has been the best performer across the week, rallying around 3.5% off the lows to hit its highest levels since April 2022.
EUR Rallies Ahead of CPI Print
The uptick in USD strength has kicked back strongly across the G10 FX space, flattening returns in other currencies. EUR has remained among the strongest performing currencies after the Dollar, rallying across the board on Friday. Today’s flash eurozone CPI release is expected to have cooled further from the prior month, adding to the peak inflation narrative, which should help lift EUR further if confirmed.
JPY Remains Weak on Friday
JPY has been the weakest performer so far today. The fresh strength seen in USD is detracting from recent JPY strength as well as the focus on a potential forthcoming shift in BOJ monetary policy. With equities in Europe and the UK well bid, JPY is also lacking safe haven support for now.
Metals Turn Lower, Crude Stabilises
In the metals and commodities space, both gold and silver fell lower yesterday. Silver continued its reversal lower from earlier highs on the week while gold was seen reversing from its weekly highs as USD strengthened. Crude prices managed to stabilise yesterday following two prior days of heavy selling. The EIA reported a larger than expected surplus in US commercials crude stores. However, the bigger focus remains on developments and perspectives on global recession risks.
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