MUFG’s Lloyd Chan notes that elevated US yields and increased expectations of further Federal Reserve (Fed) tightening are supporting the US Dollar (USD) in the near term. The 2-year and 10-year yields remain high, and markets are pricing a higher probability of Fed action by year-end.
Deutsche Bank’s Jim Reid notes that improved sentiment around a potential Iran deal helped the S&P 500 recover earlier losses and close slightly higher.
The Euro (EUR) languishes at 11-day lows against the British Pound (GBP) on Friday, on track for a 0.85% weekly loss. The positive German Gross Domestic Product (GDP) data has failed to support the common currency, while the Pound has been unfazed by weak Retail Sales numbers.