Caution ahead of the G20 trade talks.

Narrow ranges prevailed across most asset classes on Thursday with caution ahead of the G20 trade talks.

Risk appetite was slightly stronger in New York, although equity markets lost ground on Friday with month-end position adjustment also a significant factor.

The dollar registered slight net losses and close to 3-month lows amid expectations of lower interest rates with EUR/USD held in tight ranges.

Commodity currencies made net gains with important psychological levels including 0.7000 for AUD/USD in focus.

Oil prices were little changed with demand and supply issues in focus. Concerns over major currencies triggered fresh gains in gold, especially after finding further support above $1,400 per ounce.

Bitcoin registered a sharp correction after recent gains as volatility remained higher.

Sterling continued to be hampered by political concerns, especially with unease over conflicting comments from Conservative Party leadership candidate Johnson. There were still concerns over the risk of a ‘no-deal’ outcome and concerns over underlying damage to the economy, especially with unease over persistent weakness in investment.

The UK currency did make gains in European trading, but GBP/USD encountered further selling interest above 1.2700 and was unable to derive support from gains in commodity currencies with net losses in New York.

Markets remained uneasy over the risk of month-end selling with volatility liable to increase during Friday. After failing to hold above 1.2700, GBP/USD retreated to 1.2670 while GBP/EUR fell to five-month lows around 1.1140 before correcting slightly. UK confidence data was mixed as the Lloyds business barometer strengthened for June, the third increase in four months, but consumer confidence declined and Sterling was unable to make any headway on Friday.

Economic Calendar

07:45Consumer Spending MM(MAY)0.40%0.80%
08:00CHF KOF Leading Indicator(JUN)95.694.4
09:30GBP Total Business Investment (Q/Q)-0.50%
09:30GBP Current Account-23.0B-23.7B
09:30United Kingdom GDP (Y/Y)1.30%1.80%
09:30United Kingdom GDP (Q/Q)0.20%0.50%
10:00CPI (EU Norm) Prelim YY(JUN)-0.80%
10:00CPI (EU Norm) Prelim MM(JUN)-0.20%
10:00CPI (EU Norm) Final YY*(JUN)1.00%0.90%
10:00CPI (EU Norm) Final MM*(JUN)-0.10%
10:00Euro-Zone CPI (Y/Y)(JUN)1.30%1.20%
13:30USD PCE Core Price Index (Y/Y)(MAY)1.60%1.60%
13:30USD PCE Core Price Index(M/M)(MAY)0.10%0.20%
13:30USD Personal Income (M/M)(MAY)0.30%0.50%
13:30USD Personal Spending (M/M)(MAY)0.40%0.30%
13:30CAD GDP (M/M)(APR)-0.50%
13:30CAD RMPI (M/M)(MAY)-5.60%
14:45USD Chicago PMI(JUN)54.354.2
15:00USD Michigan Consumer Sentiment(JUN 01)97.997.9

*All rates shown are indicative of interbank rates and should only be used for indication purposes only. It is important to note that foreign exchange rates fluctuate and that rates may vary depending on the amount and the base currency that is purchased or sold. Rates are correct as of 8:00am UK time. CentralFX are not responsible for the rates shown.