Sterling weakened on Friday's pressured by indication of the BoE rate cuts
Pound Sterling is weaker on Friday's Asian market trade distressed by the possible UK central Bank policy which continues to indicate the interest rate cuts below zero.
Negative-level prospects have accumulated momentum after the UK sells its first government bonds with a negative outcome at the weekly auction and BoE policy makers say negative levels cannot be ruled out.
BoE Governor - Andrew Bailey said that negative levels are being considered in addition to other measures of policy.
In addition to the negative interest rates, decreasing pounds has been exacerbated by ongoing worries about Brexit, with talks between the UK and the EU generating little progress so far.
British Consultant Chief - David Frost said there was little progress in the negotiations after the two parties ended the third round of the Brexit talks last Friday.
Britain had until 30 June to lengthen the negotiations, but Prime Minister - Boris Johnson yet to declare a desire to seek extension, increasing the risk that Britain may not have had enough time to secure a trade deal beyond the transition period, which ended December 31.
Meanwhile, the US dollar index was settled at 100.03, rose 0.3%. EUR/USD pair dropped 0.1% to 1,0962, while USD/JPY rose 0.2% to 107.76.
The US dollar booked a profit in trading the last few sessions, as investors digesting the latest comments from the Federal Reserve, while data from Asian markets did not provide guidance on recovery in the economic sector. Flat gold prices on Friday, even amid US data weakening
The price of gold futures flat on the Asian market trade on Friday even though the U.S. employment data sets showed a decline this week.
Almost 40 million jobs in the US are lost due to the corona pandemic virus, it encourages safe-haven assets such as gold to be strengthened on trade.
US employment data sets this week show the alignment of Kurvadalam people who lost their jobs. Suggesting that unemployment situation is bad there’s hope to improve in the future.
This increase despite the movement of stocks on Wall Street, an alternative trade for gold, which noted a lower closure amid fears that the U.S. economic recovery from pandemic may take longer than expected.
U.S. gold futures for June dropped $30.20 or 1.7%, to $1,721.90 an ounce, stopping the second day hike that came after recording the highest price of one month above $1,760.
Spot Gold, which tracks real-time trades in bullion, drops $20.37 or 1.2%, to $1,727.55. On Friday, Spot gold reached its annual highest price at $1,751.54.
Nearly 2.5 million more Americans filed for the first unemployment claim last week, so the total number of people who lost U.S. jobs from Covid-19 to about 39 million. The Labor Department said the latest weekly submission, however, was lower than the previous week.
Oil prices turned weakened on Friday, lost profit from previous session
Crude oil is traded lower on Friday, losing profits gained from previous sessions amid the lack of supporting data in the Asian session.
The day earlier the price gained 5% after crude oil backup data was released positively offset by a surprising increase in gasoline supply, the benchmark West Texas Intermediate US crude rose again, this time without a new catalyst.
The increase in oil prices at the previous session also came after the data showed an unexpected gasoline supply of 2.8 million barrels last week, compared with an estimate for a decrease of 2.1 million barrels. The crude oil stock, meanwhile, dropped 5 million barrels against the estimated build of 1.2 million.
The stocks on Wall Street dropped because the Labor Department reported that 2.5 million other Americans filed the first unemployment allowance last week, bringing a loss of work from Covid-19 to under 40 million.
WTI contracts for the month of July, traded at the range of $35 per barrel, passed the previous highest on March contract of 34,63. Brent as a global benchmark traded in London for oil, rose 31 cents, or 0.9%, to $36.06.
WTI has gained nearly 250% increase from the lowest position of April 28 at $10.07 per barrel, as the hedge and dissipation funds offset the major cuts in the oil rig because a third of the demand for crude oil is lost as a result of the pandemic.
WTI is still down 45% throughout this year. But the analysis warned that with the U.S. crude oil benchmark near $35, the drillers could already put back some of the previously closed production sites.