Japanese Yen Weakens Further, Indices Show Gains

Japanese Yen Weakens Further, Indices Show Gains
Good morning, traders! Let's review the latest market activities and what's on tap for today, Friday.

Yesterday was marked by several significant economic data releases. The U.S. GDP came in as expected at 1.4%, while unemployment claims were steady. Durable goods orders slightly beat expectations at 0.1%, but pending home sales disappointed with a -2.1% reading. This mix of data led to a slight weakening of the U.S. dollar by the end of Thursday.

On the currency front, the Japanese yen showed notable weakness, with USD/JPY reaching new long-term highs before a minor correction. The Australian dollar remains strong, bolstered by positive inflation data earlier in the week. As of this morning, the American dollar is rebounding and is the strongest currency, closely followed by the British pound. Meanwhile, commodity currencies, including the New Zealand dollar, Australian dollar, and Canadian dollar, are among the weakest.

In commodities, silver and gold are teetering just above key support levels, with the potential for long-term sell signals if these supports fail. Oil continues its robust performance, trading near mid-term highs and showing a positive outlook.

Indices had a positive session across the board on Thursday. The Nasdaq benefited from a bullish reversal in NVIDIA, and both the Dow Jones and DAX showed gains, reflecting a generally positive sentiment as we approach the end of the week.

Looking ahead to today's data releases, we've already seen Tokyo core CPI come in slightly higher than expected at 2.1%. We are awaiting inflation figures from France and Spain, with the day culminating in GDP data from Canada, expected at 0.3%, and the core PCE price index from the U.S., forecasted at 0.1%. These upcoming figures are crucial and will likely influence market sentiment as we close out the week.

That concludes our morning commentary. Stay alert for these key data releases and keep a close eye on the markets as we navigate through the final trading session of the week.

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