Forexlive Americas FX news wrap: PCE data matches estimates

Markets:

• Gold down $1 to $1928
• US 10-year yield rises 2.5 bps to 3.51%
• WTI crude down $1.63 to $79.37
• The S&P 500 rose 0.25% to 4,070
• JPY leads, EUR lags

The week is winding down and FX is mostly flat on the day. There was some USD buying in the London fix, but it reversed in the next hour and then the market marched sideways until the end with the market turning its gaze to next week’s big central bank decisions (Fed, ECB and BOE).

EUR/USD touched a low of 1.0836 in the repair but bounced back 30 pips from there to end the week mostly flat. Cable was similar with a drop to 1.2345 to match yesterday’s low (also at the repair) before rebounding to 1.2398 late. It was also flat for the week as it consolidates below 1.2400.

USD/JPY continues to consolidate right off the bottom of the January low. JPG yields tested 0.50% today for the first time since the BOJ decision in a sign that the pressure is over. The range was narrow this week and the market is likely to go with the next break in the pair.

Commodity currencies mostly traded sideways on the day, which was somewhat surprised by the reversal and decline in oil. CAD ended slightly higher on the day, but there were some warning signs with selling in copper and some Chinese related markets.

I’m going to start asking ChatGPT to write Friday poems that sum up the mood of the market.

Meme shares, oh how they soar,
Like a cat playing with a door,
Retail investors, they flock,
To buy, like a chicken on a rock.

Gamestop, AMC, and more,
The selves they are worth fighting for
But be careful, don’t get too caught up,
The market is a roller coaster, it’s hot.

Redditors, they hold the key,
To memes that will make you happy,
But be careful, it’s not always sunny,
Meme shares can make you feel like a dummy.

So hold tight to your wallets,
And don’t believe in all that glitters
In the world of memes, everything is a game,
Just remember to always do your own research, and don’t be lame.