Today’s session began with the data on personal income in the United States, which increased by 0.50% in May compared to the previous month, while personal spending also increased by 0.2%.
Besides, US PCE inflationa key measure for the Federal Reserve, rose 2.6%, its lowest annual rate in more than three years.
The currency opened the last day of the week at an average of $4,165, placing it $6.9 above the Representative Market Rate, which today is $4,158.1.
Oil Prices
Crude oil prices rose on Friday and were on track for a third straight weekly gain, boosted by growing expectations that the Federal Reserve will begin to cut interest rates soon, awaiting inflation data due later in the day in the United States.
Data on personal consumption inflation in the United States, the Fed’s preferred measure of inflation. “With the rate market expecting two cuts from the Fed by the end of this year, Price data will serve to validate whether expectations are being overly pessimistic,” said Yeap Jun Rong, market strategist at IG.
Rising expectations of an imminent Fed easing cycle have led to a spike in risk in equity markets. According to CME’s FedWatch tool, traders now value the possibility of a first rate cut in September at 64%, compared to 50% a month ago.
“Increasing bets on one rate cut in September, and two in December, will likely weigh on Treasury yields and the dollar, thus allowing oil prices to continue their advance,” said Charalampos Pissouros of brokerage XM.
