The US dollar pared its recent gains against most major currencies on Friday and USDX posted a daily loss of 0.33% following the gains seen in the last three sessions. Against emerging market currencies, the dollar was mixed, registering a marginal decline of 0.60% against the ZAR, 0.21% against the INR and 0.41% against the CNH. USD/TRY temporarily broke above the 20.0 Turkish lira to dollar mark, only to pull back later in the session and end the session almost unchanged. The Turkish lira’s weakness can be partly attributed to Tayyip Erdogan’s lead in the presidential election, something that took the market by surprise.
Major US stock indexes were also lower on Friday amid pressure to break debt ceiling talks with less than two weeks to go until the June 1 deadline where a possible debt default could occur. The 500, US 30 and US Tech 100 declined by 0.31, 0.41 and 0.52%, respectively.
Asian stock markets were mixed on Friday. The China A50 index ended the session barely changed, while the Hong Kong 50 and Japan 225, which track the performance of Japan’s Nikkei, ended the day with moderate losses of 0.58 and 0.06%, respectively. President Joe Biden said during the Group of Seven summit in Japan that he expected relations between the US and Beijing to improve “very soon” and the G7 has also taken a united stand towards China.
The focus this Monday will be a flurry of manufacturing and services PMI reports expected from the Eurozone, the UK and the US, while later in the day US new homes sales and the Richmond Fed manufacturing index will be released.
US 500
Three major US indices closed the trading week on a soft note on Friday as early gains were wiped out after US debt limit talks stalled in Washington, dampening optimism that a move to avoid default could be made in the next few days. Compromise can be done. Stocks rose in the past two sessions on the belief that a deal could be reached to raise the $31.4 trillion debt limit in the coming days, but on Friday on reports of a pause in talks as Federal Reserve Chairman Jerome Powell Early progress was reversed. Talked on monetary policy.
The US Tech 100 index ended Friday’s session down 0.58%, while the US 500 and US 30 declined 0.31 and 0.41%, respectively.
In the week ahead, market participants will be closely watching building permits, initial construction and services PMIs, FOMC meeting minutes, GDP, PCE price index, consumer expectations and sentiment for Michigan, as well as some key speeches.
