Oil prices slipped in Asian trade on Friday but were on track for a fifth straight week of gains following strong economic data in the U.S., and on speculation over Chinese stimulus measures and OPEC+ output cuts.
The U.S. dollar edged higher in early European trade Friday, adding to the previous session’s strong gains, while the Japanese yen gained after the Bank of Japan shifted its monetary policy.
The Bank of Japan maintained ultra-low interest rates on Friday but took steps to make its yield curve control policy more flexible, underscoring a growing concern over the rising side-effects of prolonged monetary easing.
Consumer inflation in Japan’s capital grew more than expected in July, likely heralding a similar trend from nationwide inflation and putting more pressure on the Bank of Japan to eventually begin tightening policy.
New orders for key U.S.-manufactured capital goods unexpectedly rose in June, suggesting business spending on equipment could continue to grow after rebounding in the second quarter.
Economic growth in the U.S. accelerated in the second quarter as activity remained largely resilient in the face of an aggressive bout of Federal Reserve policy tightening.
