Market Roundup
•Canada Jul Retail Sales (MoM) 0.6%,1.0% forecast, 23.7%
•Canada Jul Core Retail Sales (MoM) -0.4%0,5% forecast, 15.7%
• US Aug Leading Index (MoM) 1.2,1.3%,1.4% previous
• US Sep Michigan Consumer Expectations 73.3, 67.8 forecast, 68.5 previous
• US Sep Michigan Current Conditions 87.5, 83.9 forecast, 82.9 previous
• US Sep Michigan Inflation Expectations 2.7%,3.1% previous
• US Michigan Consumer Sentiment 78.9, 75.0 forecast, 74.1 previous
• US Sep Michigan 5-Year Inflation Expectations 2.60%,2.70% previous
Looking Ahead – Economic Data (GMT)
•No data ahead
Looking Ahead - Events, Other Releases (GMT)
•No events ahead
Currencies Summaries
EUR/USD: The euro gained against dollar on Friday as weak dollar and some risk-appetite supported euro, but worries about a resurgence in coronavirus cases and lingering disappointment that central banks merely affirmed their monetary support this week, without promising new stimulus, kept investors wary. The Fed promised to keep rates low for a long time, but gave no new hints about any further monetary support. The Bank of England and the Bank of Japan sounded more open to further stimulus on Thursday but also took no action. Immediate resistance can be seen at 1.1892 (61.8% fib), an upside break can trigger rise towards 1.1916 (Higher BB).On the downside, immediate support is seen at 1.1811 ( 50% fib ), a break below could take the pair towards 1.1763 (Lower BB).
GBP/USD: Sterling declined against dollar on Friday as rising COVID-19 cases and the Bank of England signalling it is examining negative interest rates kept the currency under pressure. The pound was down 0.47% against the dollar at $1.2915 , after falling to $1.2866 on Thursday when the BoE said it was looking more closely at sub-zero rates in case economic woes deepen. After the pound gained some ground in early trade on data showing British shoppers kept spending last month, investors turned tail as Britain signalled it was considering whether to impose a second national lockdown. Immediate resistance can be seen at 1.2980 (50% fib), an upside break can trigger rise towards 1.3040 (14 DMA).On the downside, immediate support is seen at 1.2906 (Daily low), a break below could take the pair towards 1.2869 (38.2%fib).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Friday as a sell-off in technology shares weighed on investor sentiment and domestic data showed a drop in underlying retail sales, with the loonie falling for the second straight week. Canadian retail and wholesale sales both rose in July and were higher than before the coronavirus pandemic struck, Statistics Canada said, pointing to further evidence of a partial economic recovery. The Canadian currency was trading 0.2% lower at 1.3193 to the greenback , having traded in a range of 1.3137 to 1.3208. For the week, the loonie was down 0.1% .Immediate resistance can be seen at 1.3214 (50% fib), an upside break can trigger rise towards 1.3248(Higher BB).On the downside, immediate support is seen at 1.3144(14DMA), a break below could take the pair towards 1.3113 (38.2%fib).
USD/JPY: The dollar declined against the Japanese yen on Friday as investors sought safety amid concerns about a resurgence in coronavirus cases in Europe and a lack of progress in U.S. fiscal stimulus negotiations. Tokyo markets will be closed on Monday and Tuesday next week, so investors positioning for thin liquidity may have helped the yen. The dollar, after falling to 104.27 yen earlier in the session its lowest level against Japan's currency since July 31 last traded at 104.53, down 0.19% on the day. Strong resistance can be seen at 104.51 (38.2% fib), an upside break can trigger rise towards 105.00 (5DMA).On the downside, immediate support is seen at 104.46 (38.2%fib ), a break below could take the pair towards 104.00( Psychological level).
Equities Recap
European equity markets closed lower on Friday, with travel, banking and auto shares leading declines as a resurgence in coronavirus cases across the continent rekindled fears about the pandemic’s impact on a nascent economic recovery.
UK's benchmark FTSE 100 closed down by 0.71 percent, Germany's Dax ended down by 0.70 percent, France’s CAC finished the day down by 1.22 percent.
U.S. stocks fell on Friday as technology shares sold off for a third day in a row, while the S&P 500 and Nasdaq posted a third straight week of declines.
Dow Jones closed down by 0.88% percent, S&P 500 closed up by 1.12% percent, Nasdaq settled up by 1.07% percent.
Treasuries Recap
U.S. Treasury yields stabilized within their recent trading ranges on Friday as investors took in new inflation-tolerant messages from the Federal Reserve.
The benchmark 10-year yield was up less than a basis point at 0.6904% in afternoon trading.
Commodities Recap
Gold prices gained on Friday, buoyed by a weaker dollar and lingering concerns over the economic recovery from the COVID-19 pandemic that were underscored by elevated weekly U.S. jobless claims data.
Spot gold was up 0.2% to $1,946.73 per ounce at 1231GMT, and was on track for a second straight week of gains,rising 0.3% so far.
Oil prices were unchanged on Friday, weighed after a Libyan commander said a blockade on the country’s oil exports would be lifted for a month, while supportive signals from an OPEC+ meeting lifted futures.
Brent fell 15 cents to settle at $43.15 a barrel, but rose 8.3% for the week. U.S. oil futures rose 14 cents to settle at $41.11 a barrel, and gained 10.1% for the week.
