USD/JPY fell to March 16 lows following earlier Japanese data and ahead of US data today, amid rising US-China tensions. 

As of 05:55 GMT, USD/JPY fell 0.31% to 105.66, marking four-month lows at 105.46. 

Earlier Japanese data showed industrial activity fell 3.5% as expected in May, while core consumer prices rose 0.1% in June. 

In their meeting minutes, Bank of Japan's policymakers doubted the economy would recover to pre-Covid 19 levels before 2022. 

From the US, durable goods orders are expected up 7% in June, slowing down from 15.7%, as core orders are estimated up 3.5%. 

US Treasury Secretary Steven Mnuchin said the Republican Party is putting the final touches on a $1 trillion rescue bill for the economy. 

The World Health Organization reported nearly 15.8 million Covid 19 cases worldwide, with 642,000 dying so far. 

China asked the US to close the Chengdu consulate in retaliation of the shutdown of the China Houston consulate, with bilateral relations continuing to deteriorate between both sides. 

The major US stock indices fell on Friday, as the tensions between the US and China continued to escalate.

The US has ordered China to close its consulate in Houston, citing efforts to protect American intellectual and technological property.

In response, the Chinese government ordered the US to close its consulate in Chengdu, and it revoked its license in the country.

This escalated the tensions between the world's two largest economies, in terms of a trade war (tariffs), intellectual property rights or in terms of the South China Sea dispute, and maybe chief among these is the coronavirus crisis.

As for stocks, Dow Jones fell 0.3% or 93 points to 26,559 as of 14:01 GMT, Nasdaq fell 1.5% or 160 points to 10,301, and S&P 500 rose 0.7% or 22 points to 3,213.

Oil prices rose on Friday, to resume gains after yesterday's breather, thanks to strong economic data in Europe that lifted hopes for the global demand recovery from the coronavirus impact.

The US crude rose 1% to $41.44, after opening at $41.04, and hit a session-low at $40.74, and Brent crude rose 0.8% to $43.63, after opening at $43.28, with a low of $43.03 .

The US crude lost 2.1%, and Brent crude futures fell 2.2% yesterday, to post their first loss in 4 days, due to US oversupply concerns.

Data showed today that the manufacturing sector in most parts of Europe grew in July at the best pace in two years, especially in the largest European economy, Germany.

These data show that the Eurozone economy is recovering at a faster rate than expected pace from the coronavirus damages, after the EU launched a historic economic recovery fund, and successful containment of the coronavirus outbreak by most of the European countries.

The data also raised hopes for a global demand recovery, which is already returning to pre-pandemic levels.

The global oil demand crashed 30 million bpd or 30% of the pre-pandemic levels in March, due to the "Great Lockdown" of the global economy. 

Gold prices rose in European trade on Friday, to extend gains for the sixth day, near the $1,900 barrier for the first time since 2011, while on the cusp of the largest weekly gain in 4 month, as the US dollar fell against its rivals, and growing safe-haven demand.

Gold prices rose 0.5% to $1,897.83 an ounce, after opening at $1,887.37, with a session-low of $1,881.42.

Gold gained 0.9% yesterday, posting its fifth straight daily gain, and hit a 9-year high of $1,898.35 an ounce.

Gold prices have gained 4.9% so far during this week, to head for the seventh straight weekly gain, and the largest since March.

The dollar index fell 0.2% today, to extend its losses for the sixth day, and hit a 2-year low of 94.57 points, which comes in favor of gold and other dollar-denominated metals prices.

This drop in the US dollar came on investors' risk-appetite, especially after the EU leaders agreed on an economic recovery fund, and positive news about the coronavirus candidate vaccines.

The US dollar is also being weighed down by doubts over the new US economic stimulus package, due to clashes between Democrats and Republicans over the next round amount.

Gold prices drew support from the ongoing geopolitical tensions between the US and China, and inflation expectations after the launch of huge stimulus packages in most parts of the world.

Gold stocks at the SPDR ETF rose 2.04 metric tonnes yesterday, with the total at the highest level in May 2013 of 1,227.05 metric tonnes.