Market Roundup
• US says close to finalizing parts of U.S.-China trade deal –CNBC
• U.S. crude stocks fell unexpectedly last week
• Silver climbs to a one-month peak of $18.33/oz
• Brazil Sep Bank lending (MoM) 1.0%, 1.1% previous
• US Oct Michigan 5-Year Inflation Expectations 2.30%,2.40% previous
• US Oct Michigan Consumer Expectations 84.2, 83.4 previous
• US Oct Michigan Consumer Sentiment 95.5, 96.0 Forecast, 93.2 previous
• US Oct Michigan Current Conditions 113.2,108.5 previous
• US Oct Michigan Inflation Expectations 2.5%, 2.8% previous
• Canada Aug Budget Balance -3.67B, -1.47B previous
• Canada Aug Budget Balance (YoY ) -5.22B, -1.56B previous
• U.S. Baker Hughes Oil Rig Count 696, 713 previous
• U.S. Federal Budget Balance 83.0B,83.5B forecast,-200.0B previous
Looking Ahead - Economic Data (GMT)
No significant data
Looking Ahead - Events, Other Releases (GMT)
No significant events
Currency Summaries
EUR/USD: The euro dipped against the U.S. dollar on Friday, as expectations of European Central Bank leaving the door open for more policy easing weighed on the single currency. The ECB cut the key interest rate to -0.50% and announced a new wave of bond purchases in September. But outgoing President Mario Draghi highlighted the importance of accomodative fiscal policy in the euro area, which together with ECB’s quantitative easing programme should have a much stronger impact on the euro zone’s potential recovery. The euro was down 0.22 percent at $1.1079. Immediate resistance can be seen at 1.1130 (100 DMA), an upside break can trigger rise towards 1.1200 (200 DMA).On the downside, immediate support is seen at 1.1070 (Daily low), a break below could take the pair towards 1.1000 (Psychological level).
GBP/USD: Sterling declined against dollar on Friday, as investors waited for a European Union decision on a Brexit extension after British Prime Minister Boris Johnson called for a December general election.EU envoys will discuss the length of another delay to Brexit at a meeting on Friday. An EU official said the choice was between three months and a “two-tier” lag but warned that a decision might not come just yet. The pound was down as much as 0.2% against the dollar as trading opened on Friday and was last trading at $1.2845 . It saw similar losses against the euro, at 86.545 pence. Immediate resistance can be seen at 1.2885 (5 DMA), an upside break can trigger rise towards 1.2900 (Psychological level).On the downside, immediate support is seen at 1.2788(Oct 24th low), a break below could take the pair towards 1.2712 (200 DMA).
USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Friday, adding to this week’s gain after investors took in stride the federal election win of Prime Minister Justin Trudeau’s Liberal party. Trudeau, who lost his majority in Parliament, has promised since Monday’s election to continue with the Trans Mountain pipeline expansion, which could get more of Canada’s oil to international markets. He has also prioritized a tax cut for the middle class. At (1924 GMT), the Canadian dollar was trading 0.05% higher at 1.3063 to the greenback. Immediate resistance can be seen at 1.3078 (5 DMA), an upside break can trigger rise towards 1.3136 (11 DMA).On the downside, immediate support is seen at 1.3052 (Oct 24thlow), a break below could take the pair towards 1.3000 (Psychological level).
USD/JPY: The dollar strengthened against the Japanese yen on Friday, as signs of progress in U.S-China trade talks prompted traders to buy the greenback. The U.S. Trade Representative’s office said on Friday deputy-level talks would carry on, but provided no details on the areas of progress. President Donald Trump said the United States was doing “very well” in the negotiations.CNBC earlier reported that top negotiators from the two countries “made headway on specific issues” related to trade on a phone call.A sense of positive developments on the trade front lifted dollar against yen. Strong resistance can be seen at 109.00 (200 DMA), an upside break can trigger rise towards 109.32 (Aug 1st high).On the downside, immediate support is seen at 108.48 (12 DMA), a break below could take the pair towards 108.03 (21 DMA).
Equities Recap
A late turnaround helped European stocks notch gains for a fifth straight session on Friday, as signs of progress in U.S-China trade talks and upbeat reports from luxury goods makers dispelled some fears about an earnings and growth slowdown.
UK's benchmark FTSE 100 closed down by 0.03 percent, Germany's Dax ended down by 1.15 percent, France’s CAC finished the day up by 1.05 percent.
The S&P 500 rose on Friday, briefly surpassing its record closing high, after Washington said it was close to finalizing parts of a trade pact with Beijing.
Dow Jones closed up by 0.66 percent, S&P 500 ended up by 0.45 percent, Nasdaq finished the down by 0.67 percent.
Treasuries Recap
U.S. Treasury yields were flat to slightly higher on Friday, in generally rangebound trading,with investors not really looking to push yields in either direction ahead of next week's Federal Reserve monetary policy meeting.
In morning trading, U.S. 10-year note yields edged up to 1.774% from 1.766% late on Thursday.Yields on 30-year bonds were little changed at 2.257%, from 2.259% on Thursday.
Commodities Recap
Gold steadied on Friday, paring earlier gains as equity markets rose and the dollar strengthened after Washington said it was close to finalizing parts of a trade pact with Beijing, but bullion was still on track for a weekly gain.
Spot gold was flat at $1,503.11 per ounce at 1:55 p.m. EDT (1755 GMT), having earlier hit its highest since Oct. 3 at $1,517.70 gaining nearly 1%. The precious metal was up about 1% so far this week.U.S. gold futures settled mostly unchanged at $1,505.30.
Oil prices were steady on Friday but were on track for the strongest weekly gains in more than a month as support from falling U.S. crude inventories, optimism over a U.S.-China trade deal and possible action from OPEC and its allies to extend output cuts outweighed broader economic concerns.
Brent crude was down 2 cents at $61.65 by 12:17 p.m. EDT (1617 GMT) but the global benchmark was set for a weekly gain of almost 4%. West Texas Intermediate (WTI) crude was up 16 cents at $56.39 and on track for a gain of nearly 5% over the week.
