Macro Roundup (Jul 18)

SHANGHAI, Jul 18 —This is a roundup of global macroeconomic news last Friday and what is expected today.

The dollar fell on Friday as investors evaluated how high the Federal Reserve is likely to raise interest rates by when it meets later this month and as investors took profits after a strong rally that sent the greenback to a two-decade high on Thursday.

The greenback has jumped as the Fed is expected to raise rates faster and further than peer central banks as inflation soars to four-decade highs.

The dollar briefly gained on Friday after data showed that U.S. retail sales increased more than expected in June.

Other data showed that manufacturing production slumped for a second straight month in June and U.S. consumers tempered their inflation expectations in July.

The dollar index was last at 108.04, down 0.47% on the day. It reached 109.29 on Thursday, the highest since September 2002.

The euro gained 0.57% to $1.0080. It traded as low as $0.9952 on Thursday, the weakest since December 2002.

Traders ramped up bets that the Fed will hike rates even faster after data on Wednesday showed U.S. annual consumer prices jumped 9.1% in June, the largest increase in more than four decades.

U.S. stock index futures were modestly higher during overnight trading Sunday as Wall Street looks ahead to a busy week of earnings.

Futures contracts tied to the Dow Jones Industrial Average added 0.25%. S&P 500 futures were up 0.4%, while Nasdaq 100 futures advanced 0.5%.

The major averages are coming off a losing week, despite a Friday relief rally that saw the Dow jump more than 650 points. The 30-stock benchmark shed 0.16% on the week. The S&P 500 and Nasdaq Composite fell 0.93% and 1.57%, respectively.

Oil prices gained 2.5% on Friday after a U.S. official told Reuters that an immediate Saudi oil output boost was not expected, and as investors question whether OPEC has the room to significantly ramp up crude production.

Brent crude futures were up $2.50, or 2.5%, to $101.60 a barrel while West Texas Intermediate crude rose $2.38, or 2.5%, to $98.16.

Gold prices eased on Friday and posted its fifth straight weekly loss, as expectations of a sizeable rate hike by the U.S. Federal Reserve powered the dollar and eroded bullion’s appeal.

Spot gold firmed to $1,705.39 per ounce, but lost about 2% this week. U.S. gold futures also eased 0.13% to $1,703.6.

The pan-European Stoxx 600 index rose 1.8% by the close, with autos jumping 4% to lead gains.