The dollar index (DXY) fell by 0.21% on Friday, driven by a decline in the 10-year T-note yield to a four-month low, which weakened the dollar’s interest rate differentials. The decrease was mitigated by stronger-than-expected US economic reports, including a 0.5% month-over-month rise in January PPI, exceeding expectations of 0.3%, and a February MNI Chicago PMI rising to 57.7 from 54.0, against an expected drop to 52.1.
In the Eurozone, January ECB CPI expectations fell to 2.6%, below the anticipated 2.7%, while German February CPI rose by 0.4% month-over-month, also weaker than the forecast of 0.5%. The yen appreciated slightly against the dollar, benefitting from lower global bond yields and stronger than expected Tokyo consumer prices, which rose by 1.6% year-over-year.
Precious metals saw significant gains, with April COMEX gold up by 1.03% to a four-week high, attributed to lower global bond yields and increased geopolitical risks. Gold reserves held by China’s PBOC rose by 40,000 ounces in January, marking the fifteenth consecutive month of increases, highlighting strong central bank demand amid uncertain economic conditions.
