Executive Board member of the European Central Bank (ECB) Isabel Schnabel hit the wires late on Friday noting that a single cut from the ECB doesn't necessarily guarantee follow-up cuts, and that inflation in the EU, particularly services inflation, is proving a tricky beast to slay.

On Friday, the US Dollar, as depicted by the DXY, displayed some resilience despite encountering daily losses post the release of mixed Personal Consumption Expenditures (PCE) data.

Gold has fallen in recent days, but after a price increase of almost $200 between the end of June and mid-July, Commerzbank’s Commodity Analyst Barbara Lambrecht notes.

Oil prices remained at just over $80, a barrel of Brent crude was temporarily as cheap as it was last at the beginning of June, Commerzbank’s Commodity Analyst Barbara Lambrecht notes.

The Pound Sterling clings to minuscule gains on Friday after the latest inflation report in the United States (US) reinforced investors' bets that the US Federal Reserve could begin slashing rates at the September monetary policy meeting.

The price of a barrel of Brent crude temporarily traded at just over $80, close to the perceived ‘pain threshold’ of the OPEC+ production cartel: At this price level, the cartel had decided in the past to cut production in order to stabilise the market, Commerzbank’s commodity analyst Barbara Lambrecht notes.

The Pound Sterling (GBP) has nudged a little higher in quiet Asian and European trade after closing on the lows yesterday, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

The Euro (EUR) is flat on the day and down only modestly on the week as it holds a neutral range trade around 1.0850, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

The Canadian Dollar (CAD) is slightly firmer on the session and while it remains down (0.6%) on the week versus the US Dollar (USD), it remains a clearly better performer overall than its close commodity peers (AUD and NZD are both down nearly 2%), Scotiabank’s Chief FX Strategist Shaun Osborne notes.

EUR/USD rises above 1.0850 as the US Dollar (USD) declines in Friday's New York session.

The US Dollar Index (DXY) falls slightly to near 104.20 in Friday’s New York session after the United States (US) Bureau of Economic Analysis (BEA) published the Personal Consumption Expenditure Price Index (PCE) report for June.

Yesterday morning, the CNY was able to take advantage of the JPY's strength against the US Dollar and also appreciated significantly against the greenback.

Those who still believed that the JPY's rally was due to idiosyncratic factors that only affect the Japanese currency were disabused of that notion by 2:30 p.m.

The Mexican Peso (MXN) recovers in its most traded pairs on Friday after an over-week-long sell-off.

United States UoM 5-year Consumer Inflation Expectation above forecasts (2.9%) in July: Actual (3%)

United States Michigan Consumer Sentiment Index came in at 66.4, above expectations (66) in July

The AUD/USD pair remains steady above the immediate support of 0.6520 in Friday’s New York session after the release of the mixed United States (US) Personal Consumption Expenditure Inflation (PCE) report for June.

The Pound Sterling (GBP) remains sideways above fresh two-week low of 1.2845 against the US Dollar (USD) in Friday’s American session after the release of the United States (US) Personal Consumption Expenditures price index (PCE) report for June.

The United States will release June Personal Consumption Expenditures (PCE) Price Index figures on Friday.

United States Personal Consumption Expenditures - Price Index (YoY) meets expectations (2.5%) in June

United States Personal Income (MoM) registered at 0.2%, below expectations (0.4%) in June

United States Core Personal Consumption Expenditures - Price Index (YoY) came in at 2.6%, above forecasts (2.5%) in June

United States Personal Spending meets expectations (0.3%) in June

United States Core Personal Consumption Expenditures - Price Index (MoM) above forecasts (0.1%) in June: Actual (0.2%)

United States Personal Consumption Expenditures - Price Index (MoM) in line with expectations (0.1%) in June

EUR/JPY is at risk of recovering after the steep sell-off of the last two weeks has stalled.

USD/CAD has risen to the top of the range it has been trading in since the middle of April.

Mexico Trade Balance s/a, $ down to $-1.944B in June from previous $0.971B

Mexico Trade Balance, $ below forecasts ($1B) in June: Actual ($-1.037B)

Thursday was a bit puzzling. Due to concerns about the current state of the US consumer and general uncertainty about the state of the global manufacturing sector, uncertainty had spread to the currency markets in recent days, Commerzbank FX strategist Volkmar Baur notes.