Market Roundup
• Canada April Retail Sales (MoM) -15.1%,-10.0% previous
• US Current Account (Q1)Current Account (Q1) -103.0B, -109.8B previous
• Canada April Core Retail Sales (MoM) -13.5% forecast,-0.4% previous
• Russia May Retail Sales (YoY) -15.3%,-23.4% previous
• Russian April Real Wage Growth (YoY) -8.0% forecast,5.9% previous
• U.S. Baker Hughes Total Rig Count 279 previous
• U.S. U.S. Baker Hughes Oil Rig Count 199 previous
Looking Ahead – Economic data (GMT)
• No economic data ahead
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Fxbeat
EUR/USD: The euro declined against dollar on Friday after an EU summit, in which the bloc will seek to bridge regional divisions over a 750 billion euro coronavirus recovery fund, got underway. European Central Bank head Christine Lagarde told EU leaders that their economy was in a “dramatic fall” and called on the bloc to act to spearhead revival. Sweden, Denmark, Austria and the Netherlands - the bloc’s so-called “frugal four” - say the proposed recovery fund is too big and the allocation of money not sufficiently linked to the pandemic. Immediate resistance can be seen at 1.1241 (5 DMA), an upside break can trigger rise towards 1.1284 (23.6% fib).On the downside, immediate support is seen at 1.1164 (38.2% fib)., a break below could take the pair towards 1.1100(Psychological level).
GBP/USD: Sterling was on track for its worst week since mid-May after fresh data on Friday showed government borrowing had hit record highs, more evidence that the coronavirus-stricken economy was a long way from recovering. Britain’s public debt exceeded economic output for the first time since 1963, when the country was still paying off debt from World War Two. The pound was down 0.4% against the dollar at $1.2378 by 1515 GMT, its lowest since June 1. Immediate resistance can be seen at 1.2425 (50% fib),an upside break can trigger rise towards 1.2518 (38.2% fib).On the downside, immediate support is seen at 1.2311 (50% fib), a break below could take the pair towards 1.2176 (Lower BB).
USD/CAD: The Canadian dollar was little changed against the greenback on Friday after domestic data that was consistent with an economy regaining some ground in May after an April free fall and ahead of a speech next week by Bank of Canada Governor Tiff Macklem.Canadian retail sales plummeted 26.4% in April, Statistics Canada data showed. That was a bigger drop than economists had expected but a flash estimate from the national statistical agency was for sales to rebound 19.1% in May. The Canadian dollar was trading nearly unchanged at 1.3600 to the greenback . Immediate resistance can be seen at 1.3612 (21 DMA), an upside break can trigger rise towards 1.3682 (38.2% fib).On the downside, immediate support is seen at 1.3546 (23.6% fib), a break below could take the pair towards 1.3518 (11 DMA).
USD/JPY: The dollar dipped against the Japanese yen Friday as fears of a second wave of coronavirus infections kept investors cautious. Markets this week have been focused on an uptick in coronavirus cases in many U.S. states, as well as new infections detected in Beijing, raising fears of a return to global lockdowns. The world’s reserve currency, which made small advances in the North American session, gained 0.54% this week against a basket of currencies, its best performance since mid-May. Strong resistance can be seen at 107.05 (5 DMA), an upside break can trigger rise towards 107.41 (11 DMA).On the downside, immediate support is seen at 106.72 (50% fib ), a break below could take the pair towards 106.00(Psychological level).
Equities Recap
European shares closed higher on Friday, with defensive plays leading gains as investors remained hopeful that a massive stimulus package will soon be passed even though EU leaders made little progress in negotiations.
UK's benchmark FTSE 100 closed up by 1.18 percent, Germany's Dax ended up by 0.40 percent, France’s cac 40 ended up 0.42.
Wall Street lost ground on Friday, reversing earlier gains as spiking cases of COVID-19 and Apple Inc announcement of fresh store closures heightened concerns that a new round of lockdowns would be imposed and delay an economic recovery.
Dow Jones closed down by 0.80 percent, S&P 500 ended down by 0.56 percent, Nasdaq finished up by 0.03 percent.
Treasuries Recap
U.S. Treasury yields gave up earlier gains on Friday as the spread of the novel coronavirus in some U.S. states cast doubts on whether the economy will bounce back as quickly as hoped.
Benchmark 10-year note yields were little changed on the day at 0.699%, after earlier rising to 0.745%.The yield curve between two-year and 10-year notes was steady on the day at 51 basis points.
Commodities Recap
Gold gained on Friday as a rise in coronavirus cases raised concerns of a second wave of the pandemic that could compel governments to implement new lockdowns.
Spot gold was up 1.1% to $1,740.79 per ounce by 2:03 p.m. ET (1803 GMT), while U.S. gold futures settled 1.3% up at $1,753 per ounce.
