Market Roundup
• Trump says Senate unlikely to approve wall funds; shutdown looms.
• Williams says Fed policy views could change, listening to markets.
• US Q3 GDP Final, 3.4%, 3.5% forecast, 3.5% previous.
• US Q3 GDP Sales Final,1.0%, 1.2% forecast, 1.2% previous
• US Q3 GDP Cons Spending Final, 3.5%, 3.6% previous.
• US Q3 Core PCE Prices Final, 1.6%, 1.5% forecast, 1.5% previous
• US Q3 Corporate Profits Revised, 3.5%, 3.3% forecast, 3.3% previous.
• US Nov Durable Goods, 0.8%, 1.6% forecast, -4.3% previous.
• US Nov Personal Consump Real MM, 0.3%, 0.4% previous, 0.6% revised.
• US Nov Personal Income MM, 0.2%, 0.3% forecast, 0.5% previous.
• US Nov Core PCE Price Index YY, 1.9%, 1.9% forecast, 1.8% previous.
• US Dec U Mich Sentiment Final, 98.3, 97.5 forecast, 97.5 previous.
• Canada Oct GDP MM, 0.3%, 0.2% forecast, -0.1% previous.
• Canada Oct Retail Sales MM, 0.3%, 0.4% forecast, 0.2% previous, 0.1% revised.
• Canada Oct Budget Balance, C$, -1.11 bln, -1.36 bln.
Looking Ahead - Economic Data (GMT)
• No major economic data scheduled
Looking Ahead - Events, Other Releases (GMT)
• No major economic event scheduled
Currency Summaries
EUR/USD:The euro slipped lower against the U.S. dollar on Friday after traders failed to push the single currency, as liquidity in the market thinned going into the year-end holiday period. The euro's sudden weakness boosted the dollar which gained 0.3 percent against a basket of its rivals at 96.74. Despite, the dollar's bounce, the greenback remained on track for its biggest weekly drop in four months. Immediate resistance can be seen at 1.1383 (50 DMA), an upside break can trigger rise towards 1.1485 (100 DMA).On the downside, immediate support is seen at 1.1360 (9 DMA), a break below could take the pair towards 1.1283(Lower Bollinger Bands).
GBP/USD:The British pound was steady against dollar on Friday after the British economy was confirmed to have grown at its fastest rate since 2016, with trading quiet ahead of the holiday period and a parliamentary vote in January on the prime minister's Brexit deal. As the dollar rebounded across currencies, the pound slipped 0.1 percent to $1.2634 in late US trading, bringing its week-to-date gains to 0.5 percent. That puts sterling on track for its best weekly rise in seven weeks. Immediate resistance can be seen at 1.2688 (21 DMA), an upside break can trigger rise towards 1.2694 (61.8% retracement level ).On the downside, strong support is seen at 1.2613(9 DMA), a break below could take the pair towards 1.2560 (23.6% retracement level).
USD/CAD: The Canadian dollar weakened to a 19-month low against its U.S. counterpart on Friday as stocks and the price of oil fell, offsetting data showing stronger than expected growth in the domestic economy. The Canadian economy expanded by 0.3 percent in October from September, pushed higher by strength in manufacturing, finance and insurance, Statistics Canada data indicated. The Canadian dollar was last trading 0.68 percent lower at 1.3596 to the greenback. The currency touched its weakest level since May 2017 at 1.3600. Immediate resistance can be seen at 1.3600 (Psychological Level), an upside break can trigger rise towards 1.3665 (23.6% retracement level).On the downside, immediate support is seen at 1.3495 (Daily low), a break below could take the pair towards 1.3435 (9 DMA).
USD/JPY: The dollar declined against the Japanese yen on Friday,as the threat of a U.S. government shutdown and comments from a top White House trade adviser casting doubt that a breakthrough on trade tensions with China can be achieved kept investors away from market. The mood change triggered a rush out of crowded trades, including massive long positions in U.S. equities and the dollar and short positions in Treasuries. The dollar was last trading 0.03 percent lower versus the Japanese yen at 111.24. Strong resistance can be seen at 111.58 (38.2% retracement level), an upside break can trigger rise towards 112.00 (Psychological Level).On the downside, immediate support is seen at 110.86 (23.6% retracement level), a break below could take the pair towards 110.33 (Sep 7th low).
Equities Recap
European shares closed flat to slightly higher on Friday, recouping earlier heavy losses as comments from an influential U.S.policymaker soothed some concerns about rising borrowing costs and the threat of a U.S. government shutdown.
UK's benchmark FTSE 100 closed down by 0.03 percent, the pan-European FTSEurofirst 300 ended the day down by 0.17 percent, Germany's Dax ended up by 0.1 percent, France’s CAC finished the day down by 0.2 percent.
Wall Street stocks fell in volatile trading on Friday, with the Nasdaq on pace to confirm it is in a bear market, as concerns of slowing economic growth led investors to flee stocks in high-valuation sectors such as technology and communication services.
Dow Jones closed down by 1.85 percent, S&P 500 ended down by 2.06 percent, Nasdaq finished the day down by 2.99 percent.
Treasuries Recap
U.S. Treasury yields held near eight-month lows on Friday as President Donald Trump threatened a "very long" government shutdown and investors were reluctant to hold risky assets over the weekend.
Benchmark 10-year yields were little changed on the day at 2.792 percent. The yield fell to a more than eight-month low of 2.748 percent on Thursday, well off a seven-year high of 3.261 percent reached on Oct. 9.
Commodities Recap
Gold fell on profit-taking on Friday, a day after bullion touched a near six-month high and the dollar rebounded, but the metal stayed on track for a weekly gain as the appetite for risk waned.
Spot gold fell 0.32 percent to $1,255.52 per ounce at (2200 GMT), after hitting its highest since June 26 of $1,266.40 on Thursday. U.S. gold futures settled down 0.8 percent, at 1,258.10 per ounce.
Oil prices fell on Friday to their lowest since the third quarter of 2017, heading for losses of more than 11 percent in a week, as global oversupply kept buyers away from the market ahead of holidays over the next two weeks.
Brent crude fell 53 cents, or nearly 1 percent, to settle at $53.82 a barrel, after falling during the session to $52.79 a barrel, the weakest since September 2017.
U.S. light crude oil settled down 29 cents at $45.59 a barrel, after earlier touching a session low of $45.13 a barrel.
