The U.S. dollar held near 100.8, heading for a 0.6% weekly gain as weak data increased Fed cut bets. The euro rebounded to $1.12 on firm inflation and ECB cut hopes. The pound hovered near $1.32 as UK jobs data raised BoE cut odds. The yen rose toward 145 despite Japan’s 0.2% GDP drop, with the BoJ staying cautious.
Gold fell to around $3,200, set for a 3% weekly loss as trade optimism trimmed safe-haven demand. Silver dropped below $32.2, pressured by easing rate cut bets but supported by a weaker dollar. Brent crude held near $65, up on trade hopes, but gains were capped by Iran supply risks and rising inventories.
U.S. 10-year yields edged higher by week’s end, with German yields also up near 2.58%, while Japan’s 10-year yield hit a six-week high of 1.45%.
In April 2025, annual U.S. inflation slowed to 2.3%, the lowest since February 2021, slightly below expectations. Energy prices dropped 3.7%, while food and transport inflation eased. Core inflation remained at 2.8% as expected. Monthly CPI rose 0.2%, led by shelter costs.
Germany's inflation held at 2.1% in April, the lowest since October 2024. Energy prices dropped sharply, lowering goods inflation, though services inflation rose to 3.9%. Core inflation increased to 2.9%
The UK economy grew 0.7% in Q1 2025, the strongest in three quarters, beating expectations. Growth was driven by services, manufacturing, and increased investment in equipment and aircraft. Year-on-year GDP rose 1.3%.
Initial jobless claims held steady at 229,000, in line with forecasts. Continuing claims edged higher to 1.88 million. Federal employee claims dropped slightly amid ongoing job cuts.
Japan’s GDP contracted 0.2% in Q1 2025, worse than expected. Exports fell while imports rebounded, and consumer spending was flat. Business investment rose 1.4%. Annualized GDP fell 0.7%.
The U.S. dollar index held near 100.8, supported by weak economic data and Fed rate cut expectations. The euro rebounded but remains pressured by expected ECB cuts. The pound hovered near $1.32 amid weak labor data. The yen strengthened despite Japan’s economic contraction.
Gold fell to $3,200, down over 3% for the week, as easing U.S.-China tensions reduced safe-haven demand. Silver dropped below $32.2. Brent crude hovered around $65, supported by trade optimism but capped by rising supply risks and a surprise U.S. inventory build.
U.S. stocks ended the week higher. The Nasdaq rose 6.5%, the S&P 500 gained 4.9%, and the Dow added 3%. Tech led the rally, with Nvidia surging 15%, followed by strong gains in Meta, Amazon, Microsoft, and Google.
President Trump signed the bill ending the 43-day shutdown, lifting gold above 4,200 dollars and silver to 54 dollars. Markets now await delayed U.S. data, with the White House warning October jobs and CPI may not be released. Fed cut odds slipped to 60 percent, while ADP figures showed firms cutting about 11,250 jobs per week.
Global markets remained steady on Wednesday as investors awaited key inflation reports and monitored U.S. political developments. The euro hovered near 1.1580 ahead of Germany’s CPI and HICP data, while the yen and dollar were supported by optimism over a deal to end the U.S. government shutdown.
The U.S. dollar gained on optimism surrounding a bipartisan deal to end the record 41-day government shutdown, sending EUR/USD lower to around 1.1560 after four days of gains.
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