In the week ahead: U.S. GDP, Core PCE Price Index, BOJ Monetary Policy Statement

The EUR/USD pair ended the session on Friday 0.12% higher and managed to close the week with minor gains following a 1.8% sell-off in the previous week.

A somewhat softer US Dollar has given the common currency some oxygen on Friday, although the broader bearish trend remains unchanged. Earlier on Friday, Chicago Fed President Austen Goolsbee reiterated that the progress on inflation has stalled and that it will take longer than expected to achieve the 2% target.

On the contrary, ECB’s President Lagarde suggested that interest rate cuts will likely come in June. This puts the European Central Bank in the unusual situation of acting ahead of the Fed, which is expected to keep the Euro under pressure.

Gold prices rose on Friday and logged a fifth consecutive weekly rise, as fears of further retaliation between Iran and Israel triggered safe-haven demand. Explosions echoed over an Iranian city early on Friday in what sources described as an Israeli attack, but Tehran played down the incident and indicated it had no plans for retaliation.

Furthermore, Fed officials have consolidated around the idea that there is no urgency to cut interest rates. The market currently sees a about 67% chance of a rate cut in September. Elevated interest rates reduce the appeal of holding non-yielding gold.

Oil settled slightly higher on Friday, but posted a weekly decline, after Iran played down a reported Israeli attack on its soil, a sign that an escalation of hostilities in the Middle East might be avoided.

Both benchmarks spiked more than $3 a barrel early in the session after explosions were heard in the Iranian city of Isfahan but gains were capped after Tehran played down the incident and said it did not plan to retaliate.

Oil prices also faced pressure from a recent surge in the dollar, as traders swiftly scaled back bets on early interest rate cuts by the Federal Reserve.

U.S. main indexes were mixed at closed on Friday as US 500 and US Tech 100 ended lower on Friday as Netflix shares weighed, while American Express kept US 30 afloat after quarterly earnings from both companies.

Netflix Inc said it would stop reporting quarterly membership numbers and average revenue per membership starting next year with its Q1 2025. The announcement overshadowed the video streaming giant’s better-than-expected first-quarter results, sending Netflix shares more than 9% lower.

American Express stock rose 6% after the financial services giant's first-quarter profit vaulted past estimates, driven by an affluent customer base that increased spending as recession fears ebbed on Friday. Focus now turns to upcoming quarterly earnings from some of Wall Street’s biggest tech titans, due later in the week.