The dollar index fell by 0.21% on Friday following reports that the Iranian government is open to discussing uranium enrichment limits, and President Trump indicated he would allow two weeks for diplomacy before making further military decisions concerning Iran. The Philadelphia Fed’s June business outlook survey remained unchanged at -4.0, which was below the expected improvement to -1.5, contributing to the dollar’s decline.
In related economic data, the US May leading economic indicators index fell by 0.1% month-over-month, marking the sixth consecutive month of decline. The market is pricing in a 15% chance of a 25 basis point rate cut by the Federal Reserve after the July 29-30 FOMC meeting.
Elsewhere, Japan’s May national CPI rose by 3.5% year-over-year, exceeding expectations, while the yen weakened due to diminished safe-haven demand in light of eased Middle East tensions. Additionally, precious metals saw a downturn, with gold closing down 0.66% and silver down 2.43%, as easing tensions and comments from both President Trump and BOJ Governor Ueda impacted market sentiments.
