Here are the top five things you need to know in financial markets on Friday, April 29:
1. Yen hits 18-month high
The lack of action from the Bank of Japan on Thursday and continued weakness in the dollar, which traded at 8-month lows, put downward pressure on the USD/JPY on Friday.
The pair hit a low of 106.91, its weakest level since October 2014.
2. Euro zone inflation continues to challenge ECB despite economic pickup
Europe was awash with economic releases on Friday with the euro zone posting positive growth numbers.
The region saw gross domestic product growth double in the first quarter to 0.6% to its best level in a year.
Euro area unemployment also fell further than expected to 10.2% in March, its lowest level since August 2011.
However, the consumer price index returned to negative territory in April, dropping 0.2% compared to expectations for a decline of 0.1%.
The inflation data will continue to pressure the European Central Bank’s efforts to bring inflation back to its 2% target.
3. North American data ahead
While Canada was slated to produce February GDP data at 12:30GMT, or 8:30AM ET, on Friday, investors waited for a slew of economic reports.
Personal income and spending, along with the core PCE price index for March and were all due at 12:30GMT or 8:30AM ET.
Market participants will also keep an eye on the Chicago PMI for April or the revision to the University of Michigan’s April consumer sentiment due at 13:45GMT, or 9:45AM ET, and 14:00GMT or 10:00AM ET, respectively.
4. Oil continues to break new 2016 highs
Oil prices edged to new 2016 highs on Friday, lifted by a weak dollar and falling production in the United States, although a looming rise in Middle East output capped gains.
Prices may be affected by a report from industry group Baker Hughes on U.S. rig counts to be released later in the session.
U.S. crude oil futures rose 1.22% to $46.59 at 10:11AM GMT, or 6:11AM ET, while Brent oil traded up 0.90% to $47.77.
5. Gold hits 14-month high on weaker dollar
Gold prices rose to 14-month highs in European morning hours on Friday, as a weaker U.S. dollar and uncertainty caused by the Bank of Japan’s decision to leave its monetary policy unchanged supported the precious metal.
At 10:16AM GMT, or 6:16AM ET, the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.42% to 93.34, its lowest level since August 2015.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were up 0.98% at $1,278.85, at at 10:17AM GMT, or 6:17AM ET,