Market Roundup
• US Aug Goods Orders Non Defense Ex Air (MoM) 0.4%,0.5% forecast, 1.9% previous
• US Aug Core Durable Goods Orders (MoM) 0.4%,1.2%,2.6% previous
• US Aug Durables Excluding Defense (MoM) 10.1% previous
• US Aug Durable Goods Orders (MoM) 1.8%, 1.5% forecast, 11.4% previous
• Canada Jul Budget Balance -28.23B, -33.58B previous
• Canada Jul Budget Balance (YoY) -148.58B,-120.35B previous
• U.S. Baker Hughes Oil Rig Count 261,179 previous
• U.S. Baker Hughes Total Rig Count 183 ,255 previous
Looking Ahead - Economic Data (GMT)
•No data ahead
Looking Ahead - Events, Other Releases (GMT)
•No significant events
EUR/USD: The euro declined against dollar on Friday as fears a of second wave of COVID-19 infections in Europe rattled investor sentiment. France set a new record of daily COVID-19 infections and the country’s prime minister warned on Thursday that the government could be forced to reconfine areas. In a volatile week marked by worries about coronavirus restrictions hampering the European economic recovery ,euro was set for its worst week in over three months. Immediate resistance can be seen at 1.1686 (38.2% fib), an upside break can trigger rise towards 1.1731(38.2%fib).On the downside, immediate support is seen at 1.1619 (23.6% fib ), a break below could take the pair towards 1.1601 (lower BB).
GBP/USD: Sterling erased earlier gains in a choppy session on Friday as investors hoped Britain’s new scaled-back job support scheme will be followed by other fiscal measures, but feared talks about a move to sub-zero rates could also intensify. The outlook for sterling remains bleak as looming risk of a no-deal Brexit and new lockdown measures also weigh down the currency. Sterling was down 0.2% at $1.2718 against a stronger dollar, which is on course for its best week in six months. Sterling hit a two-month low of $1.2676 on Wednesday. Immediate resistance can be seen at 1.2752 (5DMA), an upside break can trigger rise towards 1.2822 (38.2% fib).On the downside, immediate support is seen at 1.2666(23.6%fib), a break below could take the pair towards 1.2600(Psychological level).
USD/CAD :The Canadian dollar weakened to a seven-week low against its U.S. counterpart on Friday as rising economic and political uncertainties raised demand for safe-haven currencies, with the loonie losing ground for the third straight week. The loonie was trading 0.2% lower at 1.3385 to the greenback. The currency touched its weakest intraday level since Aug. 4 at 1.3418.For the week, the loonie was down 1.4%. That was its biggest weekly decline since April .Immediate resistance can be seen at 1.4014 (5 DMA), an upside break can trigger rise towards 1.4170 (38.2%fib).On the downside, immediate support is seen at 1.3366 (Psychological level), a break below could take the pair towards 1.3288 (21 DMA).
USD/JPY: The dollar strengthened against the Japanese yen on Friday as investors sought safety in greenback amid a slowing economic recovery, rising coronavirus infections in Europe and uncertainty surrounding the upcoming U.S. elections. The dollar remained buoyant on Friday after easing back from two-month highs on Thursday, rising 0.09% against the yen to 105.49. The dollar index, which measures the dollar against a basket of six major peers, inched up to 94.350. Strong resistance can be seen at 105.72 (38.2% fib), an upside break can trigger rise towards 106.00 (Psychological level).On the downside, immediate support is seen at 105.15 (5DMA ), a break below could take the pair towards 104.45(23.6% fib).
Equities Recap
European stocks recorded their worst weekly decline since mid-June on Friday, as investors feared that a second wave of coronavirus infections will hamper economic recovery, while banking stocks sank to an all-time low.
UK's benchmark FTSE 100 closed up by 0.34 percent, Germany's Dax ended down by 1.09 percent, France’s CAC finished the day down by 0.69 percent.
U.S. stock index futures fell on Friday as investors remained skeptical of more fiscal stimulus needed to shore up a domestic economy hammered by the pandemic-driven recession.
Dow Jones closed up by 1.34% percent, S&P 500 closed up by 1.60 % percent, Nasdaq settled up by 2.26% percent.
Treasuries Recap
U.S. Treasury yields moved off earlier lows on Friday in the wake of an upbeat report on U.S. durable goods, while stocks shook off a weaker start to turn higher.
The yield on 10-year Treasury notes was down 0.1 Basis points to 0.663% after falling as low as 0.651% on the day.
Commodities Recap
Oil edged lower on Friday, falling more than 2% on the week as COVID-19 cases surged globally and oil supply is set to rise in coming weeks.
Brent crude futures settled at $41.92 a barrel, down 2 cents, while U.S. West Texas Intermediate (WTI) crude futures lost 6 cents to $40.25 a barrel.Brent dropped 2.9% for the week and WTI sunk 2.1%
