EUR/USD: EUR/USD is trading near 1.21, unable to recover from the hit of Thursday’s three strong US data. All eyes are on the nonfarm payrolls data for May, which should show an increase of 664.000 jobs.
The Federal Reserve Book pointed to rising price pressures. This document includes anecdotal evidence received from a bank representative across the country and is published in connection with the adoption of a major decision on the interest rate. If the Fed has this new information on the table, it may be a signal for fewer bond purchases in two weeks.
Gold: The XAU/USD remains on the losing side, dropping 0.15% on the day around $1870 for the European open on Friday. The yellow metal fell the most since late February the previous day as the US dollar benefited from risk sentiment. However, pre-NFP cautious sentiment seems to have been teasing the golden bears lately. The XAU/USD pair struggled to find direction earlier in the week due to the lack of high-level macroeconomic data releases and important fundamental drivers. The pair has regained its momentum since Tuesday and started a technical rally after breaking above $1900. By Friday, it has already fallen to the level of 1860 and then rebounded to 1870.
WTI: Oil prices rose to a new annual high on Wednesday following the announcement of a key decision by the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+.
West Texas WTI spot prices rose more than 1% to a high of $68.97, from a low of $67.80 by the close of Wall Street trading. OPEC + agreed to support the group’s plan to restore supplies in a meeting that lasted 20 minutes – the shortest in the group’s history. The group’s confidence bounced back, and oil rose on their optimistic assessment of the balance sheet pace in the oil market.
In comments to the press, Saudi Arabia’s Energy Minister said that a sustained recovery in the US and Chinese demand and the pace of COVID-19 vaccine deployment could further rebalance the global oil market.