Dallas Federal Reserve President Robert Kaplan raised the prospect of a worrisome rise in US inflation expectations, as imbalances between supply and demand for labour and goods put upward pressure on prices.
FUNDAMENTALS Spot gold was down 0.2% at $1,823.77 per ounce by 0127 GMT. Bullion lost 0.4% so far this week. U.S. gold futures were steady at $1,823.20. The dollar index held firm near a one-week high, and was set for a weekly gain against its rivals. [USD/] Benchmark U.S. 10-year Treasury yields slipped from a more than one-month high hit on Thursday. Lower bond yields reduce the opportunity cost of holding non-interest bearing gold. [US/] Data on Thursday showed that fewer Americans filed new claims for unemployment benefits last week, while producer prices increased more than expected in April. Recent economic readings out of the United States have sparked concerns over rising inflation and raised bets over an earlier-than-expected Federal Reserve rate hike.
May 14, 2021 09:21 GMTFXStreet News
Renewed USD selling dragged USD/JPY lower for the second consecutive session on Friday.
A generally positive risk tone might undermine the safe-haven JPY and help limit the slide.
Investors look forward to the US monthly Retail Sales data for a fresh directional impetus.
The USD/JPY pair retreated nearly 30 pips from the Asian session highs and dropped to fresh daily lows, around the 109.35 region in the last hour.
The pair struggled to capitalize on its early uptick, instead met with some fresh supply near the 109.65 region and has now drifted into the negative territory. This marked the second consecutive day of a downtick and was sponsored by renewed US dollar selling bias. The yield on the benchmark 10-year US government bond retreated further from the 1.70% threshold and kept the USD bulls on the defensive. That said, a generally positive tone around the equity markets might undermine the safe-haven Japanese yen and help limit the downsid
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Dallas Federal Reserve President Robert Kaplan on Friday raised the prospect of a worrisome rise in U.S. inflation expectations, as imbalances between supply and demand for labor and goods put upward pressure on prices.
Most U.S. central bank policymakers see the upward pressure – evident in a 4.2% jump in annual consumer prices last month – as transitory, expecting supply chains to eventually catch up to higher demand, more workers to return to the labor force as the rollout of COVID-19 vaccines alleviates safety concerns, and working parents to have more flexibility as more schools and childcare facilities reopen.