The dollar strengthened on rising Fed rate hike odds, while oil prices retreated from weekly highs, impacting global currency pairs and precious metals.
Dollar rose as hawkish CPI report pushed Fed rate hike odds to 88%, supporting the greenback.
WTI crude fell 2.4% on Friday after IEA warned high prices will cause biggest demand drop since pandemic, despite weekly gain.
EUR/USD fell as stronger dollar and higher oil prices pressured the euro, despite ECB rate hike support.
USD/JPY fell as yen gained on BOJ rate hike expectations and potential GPIF allocation shift, despite higher US rate odds.
Gold edged higher despite stronger dollar and higher yields, supported by ETF inflows and central bank buying.
Silver rose as precious metals found support from ETF inflows and central bank demand, offsetting dollar strength.
The US dollar index climbed 0.06% on Friday as a hawkish CPI report pushed FOMC rate hike expectations to 88%. Meanwhile, WTI crude oil fell 2.4% following an IEA warning on demand, providing a reprieve for the Japanese yen despite broader dollar strength.
The dollar was primarily supported by a hawkish CPI report and rising 10-year T-note yields, which increased the probability of an FOMC rate hike to 88%.
Gold and silver are finding support from sustained ETF inflows and aggressive central bank purchasing, particularly from the PBOC, which has increased reserves for 21 consecutive months.