Citi expects the yen to weaken

In currencies

The U.S. dollar started to recover losses after data revealed that weekly jobless claims in the U.S. dropped by 4,000, reaching a four-month low of 218,000, below the 225,000 expected by economists surveyed by Reuters.

Citi has revised its USD/JPY forecast, offering projections for both the medium and long term. In its medium-term outlook, Citi predicts the yen may weaken, potentially pushing the USD/JPY toward 150 by the end of 2024. However, strategists caution that the pair could fall below 140 in early 2025, continuing a downward trend to finish near 130 by the end of that year.

In stocks

The S&P 500 reached a new record close on Thursday, boosted by a rally in chip stocks led by Micron and positive economic data that lifted investor sentiment.

Micron soared almost 15%, driving gains in both chip stocks and the broader market. The memory chipmaker issued impressive guidance for the current quarter following fiscal fourth-quarter results that exceeded Wall Street expectations. As one of the largest memory chip manufacturers globally,

Micron highlighted strong AI-driven demand, which significantly boosted sales of its high-bandwidth memory chips.

Commodities

Oil prices were set to decline for the week, with Brent falling as much as 4% and WTI on track to fall by 6%.

Prices declined for a third consecutive day on Friday and were poised for a weekly drop as investors focused on expectations of increased output from Libya and the broader OPEC+ group. However, fresh stimulus measures from top importer China helped limit the losses.

Brent crude futures dipped 20 cents, or 0.28%, to $71.40 per barrel, while U.S. West Texas Intermediate (WTI) crude futures fell 0.21%, to $67.53.