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Dollar dips post PCE data
The dollar softened as markets priced in a December Fed rate cut; U.S. Core PCE rose 2.8% YoY in October.
Yen: Strengthened to a one-month high after Tokyo's core inflation exceeded forecasts, fueling BOJ rate hike expectations.
Gold: Rose on a weaker dollar and geopolitical tensions but trimmed weekly losses amid ceasefire news.
Oil: Traded sideways near $72 (Brent) and $68 (WTI) ahead of next week’s OPEC+ policy decision.
Currencies
The dollar softened amid persistent expectations of a December rate cut by the U.S. Federal Reserve. The US Core Personal Consumption Expenditures (PCE) Price Index accelerated on an annual basis, recording a growth of 2.8% in October compared to 2.7% in September. Meanwhile, the index remained unchanged on a monthly basis at 0.3%.
And in Japan, data revealed that core consumer prices in Tokyo climbed more than anticipated in November, signaling mounting inflationary pressure and bolstering expectations of a December rate hike by the Bank of Japan. The Japanese yen rallied following stronger-than-anticipated inflation data from Tokyo. The yen surged to its strongest level against the dollar in over a month, with the USD/JPY pair dropping nearly 1%.
Asian currencies remained under pressure in November, weighed down by a stronger dollar amid optimism driven by policies from former President Trump.
Commodities
Gold prices continued to rise on Friday, supported by a weaker dollar as traders priced in expectations of a December rate cut by the Federal Reserve. Heightened geopolitical tensions further boosted demand for the safe-haven asset.
While the yellow metal faced weekly losses following news of a ceasefire between Israel and Hezbollah, escalating tensions between Russia and Ukraine helped gold pare some of those declines on Thursday and Friday.
Oil prices continued to be under pressure, moving in a sideway range as prices lack direction before OPEC+ meeting next week.
Brent was near $72.20 while WTI was near $68.48
