The dollar weakened and government bond yields fell to multi-week lows on Friday after a benign reading of US inflation in June and soft retail demand raised doubts the Federal Reserve would increase interest rates later this year.
Data from the Labor Department showed that consumer price index was flat in June after edging down by 0.1% in May.
Excluding the volatile food and energy categories, prices rose 0.1 percent in June and 1.7 percent from a year earlier.
Other US data releases today pertained to June retail sales, a measure acting as a proxy for consumer spending. Market participants said the lack of spending from US shoppers made it hard to envision inflation approaching the Fed's 2% target.
The yield on the 10-year note fell five basis points to 2.298% after earlier dropping as low as 2.75%.
Gas prices fell 2.8 percent in June, after a 6.4 percent fall in May.
Severe storms a threat later Friday but weekend should be nice
The weather outlook also says unsafe heat conditions are possible with maximum heat index values near 100 degrees. We'll begin with partly cloudy skies with thunderstorms developing during the afternoon.
The Federal Reserve is embarking on an annual summer ritual: Downgrading its overly optimistic forecasts for economic growth and, potentially, preparing for a pause in interest rate increases.
The greenback slipped to a 2-day low of 1.1468 against the euro, from a high of 1.1391 hit at 8:15 pm ET.
"Caution on the part of consumers comes despite a solid job market and booming equity markets and is feeding into core inflation through price wars on cell phone service, airfares, cars, clothing", she told Business Insider.
"Most senior Fed officials had believed the slowdown in inflation was temporary, but now they have been forced to reassess their views", MarketWatch said.
The New Zealand dollar another high-earning currency that has gained from significant risk appetite this week, shed 0.02 percent to 0.7318 after reaching an eight-month peak of 0.7369 on Thursday. It gained by a similar quantum against the Japanese yen.
The gains, which ends a two-month stasis near the 21,500 level on the Dow Jones Industrial Average, came despite uneven big bank earnings, disappointing retail sales growth and a decline in the inflation rate to the weakest level since October. The 10 yr yield is down by 5 bps and the 2s/10s spread is narrowing by 2 bps.
United States considers new sanctions on Chinese banks to address North Korea threat
Last year, sales of coal accounted for more than 50 percent of North Korean exports to China and about a fifth of the country's total trade.
The Fed is projecting one more interest rate hike for this year, which economists expecting it to come in December. It was the yield's largest weekly decline since the week ended June 2.
Gold prices jumped 1.4 percent to the highest level in almost two weeks on Friday after data pointed to weak US inflation, reaffirming doubts that the USA central bank would again hike interest rates this year.
The greenback edged down 0.2 percent to 1134.30 against Korean won.
Indeed a cursory look at the EUR/USD chart, which has extended its uptrend into the 1.14s recently, supports a continuation higher, which would be commensurate with a weaker Dollar profile.
USA crude futures rose 1.8 per cent to $45.83 per barrel, extending their recovery from Monday's near two-week low of $43.65.
Fresh Kid Ice, 2 Live Crew Co-Founder, Dies at 53
The founding member of 2 Live Crew passed away in Miami, reports TMZ . (An Asian rapper) has to just come along and do it big'. The group expanded to include Luther Campbell , now known as Uncle Luke, when they signed with his record label shortly after.