09:10 AM
The session began on Friday with data on personal income in the United States, which rose 0.50% in May compared to the previous month, while personal spending also increased 0.2%.
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In addition, US PCE inflation, a key measure for the Federal Reserve, rose 2.6%, its lowest annual rate in more than three years.
Thus, the dollar opened the last day of the week at an average of $4,165standing $6.9 above the Representative Market Rate, which today stands at $4,158.1.
Oil Prices
Crude oil prices rose on Friday and were headed for their third consecutive weekly rise, driven by growing expectations that the Federal Reserve will soon begin lowering interest rates and awaiting inflation data due later in the year. day in the United States.
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Data on personal consumption inflation in the United States, the Fed’s preferred measure of inflation. “With the rates market expecting two cuts from the Fed by the end of this year, the price data will serve to validate whether expectations are being too 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.
“Increased 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 the XM brokerage.
