America’s Roundup: Dollar falls after US inflation data ,Wall Street closes up, Gold rises, Oil drops 1.5% ends week lower amid China demand concern

Market Roundup

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Currency Summaries

EUR/USD: The euro edged higher on Friday as dollar dipped after U.S. PCE inflation data did not disrupt expectations that the Fed will cut rates by September and potentially ease three times this year. The Commerce Department reported that the personal consumption expenditures (PCE) price index, the Fed's preferred inflation gauge, rose 0.1% in June after remaining unchanged in May, matching economists' estimates. Over the 12 months through June, the PCE price index increased by 2.5%, in line with expectations, following a 2.6% rise in May. The data likely paves the way for the Fed to start cutting rates in September, as widely anticipated by the market. Immediate resistance can be seen at 1.0865(38.2%fib), an upside break can trigger rise towards 1.0909 (23.6%fib).On the downside, immediate support is seen at 1.0825(50%fib), a break below could take the pair towards 1.0790(61.8%fib).

GBP/USD: The pound rose on Friday but was still headed for a second consecutive weekly fall against the dollar after a week of turmoil across global markets hit higher-yielding assets and as investors switch focus to next week's Bank of England meeting.The pound, which hit one-year highs last week above $1.31, is heading for a 0.5% decline against the dollar this week.It's still on track for a gain of 1.6% this month and remains this year's top-performing G10 currency against the dollar, with a 1.1% rise, compared with runner-up the euro , which is down 1.67% against the dollar this year.Sterling was up 0.14% on the day at $1.2862. Immediate resistance can be seen at 1.2882(38.2%fib), an upside break can trigger rise towards 1.2949(23.6%fib).On the downside, immediate support is seen at 1.2840(50%fib), a break below could take the pair towards 1.2787(61.8%fib).

 USD/CAD: The Canadian dollar weakened for the eighth consecutive day against the U.S. dollar on Friday as oil prices fell and the Bank of Canada cut interest rates further earlier in the week. The price of oil , one of Canada's major exports, settled 1.4% lower at $77.16 a barrel on declining Chinese demand and hopes of a Gaza ceasefire agreement.On Wednesday, the BoC lowered its benchmark rate for a second straight month, cutting by 25 basis points to 4.50%.Investors see a roughly 70% chance of a rate cut at the next policy announcement in September. The loonie was trading 0.1% lower at 1.3835 per U.S. dollar . Earlier, it touched 1.3848, matching the eight-month low set on Thursday. Immediate resistance can be seen at 1.3711 (38.2% fib), an upside break can trigger rise towards 1.3758 (5DMA).On the downside, immediate support is seen at 1.3644(38.2% fib), a break below could take the pair towards 1.3577 (50% fib).

USD/JPY: The dollar eased against the yen on Friday after U.S. inflation data raised optimism that the Federal Reserve might soon start cutting interest rates. The greenback fell 0.1% to 153.78 yen and was set for its largest weekly percentage drop against the yen since early May. The yen has strengthened amid expectations of a Fed rate cut and potential tightening by the Bank of Japan, which might raise rates and reduce bond purchases in the coming months. Additionally, suspected BOJ intervention earlier this month also supported the yen.Strong resistance can be seen at 155.33(38.2%fib), an upside break can trigger rise towards 156.33(50%fib). On the downside, immediate support is seen at 153.34 (23.6% fib), a break below could take the pair towards 151.09 (Daily low).

Equities Recap

European shares closed higher on Friday, led by earnings gains in sectors such as luxury goods. Global markets remained stable following data that indicated an improving U.S. inflation picture.

UK's benchmark FTSE 100 closed up by 1.21 percent, Germany's Dax ended up by 0.65 percent, France’s CAC finished the day up by 1. 22 percent.

Wall Street's major indexes ended higher on Friday as investors returned to tech megacaps that had led broad sell-offs earlier in the week. Inflation data also lifted optimism that the Federal Reserve may soon start cutting interest rates.

Dow Jones closed up by 1.64 percent, S&P 500 ended up by 1.11 percent, Nasdaq finished the day up by 1.05 percent.

Commodities Recap

Gold prices climbed 1% on Friday as U.S. Treasury yields fell, driven by expectations that the Federal Reserve may cut interest rates in September after data showed modest price increases in June.

Spot gold rose 0.8% to $2,382.98 per ounce by 1741 GMT, after hitting its lowest since July 9 on Thursday. U.S. gold futures for August delivery settled 1.2% higher at $2,381.