Market Roundup
• US Dec ISM NY Business Conditions 39.1%, 50.4% previous
• US Dec ISM-New York Index 869.0, 874.5 previous
• US Dec Construction Spending (MoM) 0.6%, 0.3% forecast, 0.1% previous
• US Dec ISM Manufacturing Employment 45.1, 46.6 previous
• US Dec ISM Manufacturing New Orders Index 46.8, 47.2 previous
• US Dec ISM Manufacturing PMI 47.2, 49.0 forecast, 48.1 previous
• US Dec ISM Manufacturing Prices 51.7, 47.5 forecast, 46.7 previous
Looking Ahead - Economic Data (GMT)
• No significant data
Looking Ahead - Events, Other Releases (GMT)
• No significant events.
Currency Summaries
EUR/USD: The euro was little changed against the U.S. dollar on Friday, as dismal economic news from Europe and the UK kept investors cautious. Investor focus has now turned to the minutes of the Federal Reserve’s Dec. 10-11 policy meeting, due at 1900 GMT on Friday. The euro was last trading down at 0.01 percent at $1.1171. Immediate resistance can be seen at 1.1239 (Dec 31st high), an upside break can trigger rise towards 1.1300 (Psychological level).On the downside, immediate support is seen at 1.1138 (11 DMA), a break below could take the pair towards 1.1100 (Psychological level).
GBP/USD: The British slipped lower against dollar on Friday, as after downbeat data on construction and consumer demand and heightening worries for an economy showing no sign of emerging from Brexit-linked gloom. The pound also fell to a one-month low versus the yen as investors hunkered down in safe-haven assets such as the yen and gold following the U.S. killing of an Iranian commander which threatened to fuel fresh conflict in the Middle East . Sterling fell as low as $1.3054 before trimming its losses to stand half a percent lower at $1.3086 by 1756 GMT. Immediate resistance can be seen at 1.3163 (Daily high), an upside break can trigger rise towards 1.3254 (Jan 2nd high).On the downside, immediate support is seen at 1.3052 (11 DMA), a break below could take the pair towards 1.3000 (Psychological level).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Friday after escalation of geopolitical tensions in the Middle East boosted safe-haven assets, including the greenback. The U.S. dollar rose against a basket of other major currencies, stocks fell globally and U.S. oil prices surged 3.7% after a U.S. air strike killed a top Iranian commander in Iraq, ratcheting up tensions between the two powers. The Canadian dollar was trading nearly unchanged at 1.2984 to the greenback. Immediate resistance can be seen at 1.3018 (5 DMA), an upside break can trigger rise towards 1.3083 (11 DMA).On the downside, immediate support is seen at 1.2949 (Jan 2nd low), a break below could take the pair towards 1.2900 (Psychological level).
USD/JPY: The dollar was declined against the Japanese yen on Friday, as investors switched to the safe-haven assets after a senior Iranian military official was killed in an air strike conducted by the United States. Tensions flared after Iranian Major-General Qassem Soleimani, head of the elite Quds Force, and top Iraqi militia commander Abu Mahdi al-Muhandis were killed in the air strike on their convoy at Baghdad airport. On the trade front, U.S. and China are due to sign an interim deal on Jan. 15, but investors await details regarding the fine print of the agreement. Strong resistance can be seen at 108.69 (5 DMA), an upside break can trigger rise towards 109.11 (11 DMA).On the downside, immediate support is seen at 107.89 (Daily low), a break below could take the pair towards 107.00 (Psychological level).
Equities Recap
European shares slipped from near record highs on Friday after a U.S. air strike in Iraq killed a top Iranian commander and fanned tensions in the Middle East, with a surge in oil prices hammering airline stocks.
The UK's benchmark FTSE 100 closed down by 0.04 percent, Germany's Dax ended down by 1.25 percent, and France’s CAC finished the up by 0.04 percent.
Wall Street’s major indexes fell from record highs on Friday after a U.S. air strike in Iraq killed a top Iranian commander, sharply escalating geopolitical tensions in the Middle East and sending investors scurrying to safe-haven assets.
AT ( GMT 1836),Dow Jones closed down by 0.68 percent, S&P 500 ended down at 0.54 percent, Nasdaq finished the day down by 0.54 percent.
Treasuries Recap
U.S. Treasury yields fell sharply on Friday on safety buying after a U.S. air strike killed Iran Quds Force chief Qassem Soleimani, increasing tensions between the two countries.
Benchmark 10-year note yields were last 1.821%, after falling as low as 1.795% overnight, which was the lowest since Dec. 12. They closed at 1.882% on Thursday.
Commodities Recap
Gold prices surged on Friday to a four-month peak, racing past the key $1,550 an ounce level after a U.S. air strike in Iraq killed the commander of Iran’s elite Quds Force, prompting a rush into safety assets.
Spot gold rose 1.4% to $1,549.63 per ounce as of 10:29 a.m. ET (1529 GMT), having risen to $1,551.36 earlier in the session, its highest since Sept. 5.U.S. gold futures rose 1.6% to $1,552.30 per ounce.
Oil prices jumped to the highest level in more than three months on Friday after the U.S. killed a top Iranian military commander in Iraq, sparking fears that escalating conflict in the region could disrupt global oil supplies.
Brent crude was up 3.6% or $2.40 a barrel by 11:15 a.m. ET (1616 GMT) at $68.65, just off the session peak of $69.50 a barrel, highest since mid-September when Saudi oil facilities were attacked.
West Texas Intermediate (WTI) crude was up $2.14 or 3.5% at $63.32 a barrel. The session high was $64.09 a barrel, its highest since April 2019.
