Market Roundup
• U.S. manufacturing output, services activity pick up in November
• Trump says trade deal with China 'potentially very close'
• Euro touches weekly low on euro zone flash PMIs
• Price of U.S. oil decreases by 81 cents on Friday
• Canada Sep Core Retail Sales (MoM) 0.2%,0.1% forecast,-0.2% previous
• Canada Sep Retail Sales (MoM) -0.1%,-0.1% forecast, 0.1% previous
• US Nov Manufacturing PMI 52.2, 51.5 forecast, 51.3 previous
• US Nov Markit Composite PMI 51.9, 51.9 forecast, 50.9 previous
• US Nov Services PMI 51.6, 51.0 forecast, 50.6 previous
• US Nov Michigan 5-Year Inflation Expectations 2.50%,2.30% previous
• US Nov Michigan Consumer Expectations 87.3, 86.1 forecast, 84.2 previous
• US Nov Michigan Consumer Sentiment 96.8, 95.7 forecast, 95.5 previous
• US Nov Michigan Current Conditions 111.6, 111.4 forecast, 113.2 previous
• US Nov Michigan Inflation Expectations 2.5%,2.5% previous
• US Nov KC Fed Composite Index -3, -3 previous
• US Nov KC Fed Manufacturing Index -5 , 8 previous
Looking Ahead - Economic Data (GMT)
• No major economic data scheduled
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Currency Summaries
EUR/USD: The euro declined against the U.S. dollar on Friday, as stronger dollar and weaker euro zone flash PMI data weighed on euro. IHS Markit’s flash November composite Purchasing Managers’ Index, seen as a reliable guide to economic health, slipped to 50.3 from October’s 50.6, moving to within a whisker of the 50 mark separating growth from contraction. That was below all expectations and was only just shy of a more than six-year low reading in September.The euro was down 0.30 percent at $1.1124.The dollar index, which measures the greenback against six major currencies, was 0.29 percent higher at 98.24. Immediate resistance can be seen at 1.1084 (100 DMA), an upside break can trigger rise towards 1.1170 (200 DMA).On the downside, immediate support is seen at 1.0982 (Lower BB), a break below could take the pair towards 1.0942 (Oct 8th low).
GBP/USD: The pound slipped lower against the dollar Friday, after surveys showed British business suffered its deepest downturn since mid-2016, with caution rising before a Dec. 12 general election.The first “flash” early reading of the IHS Markit/CIPS UK Purchasing Managers’ Indexes (PMI) for Britain showed that declines in both the services and manufacturing sectors quickened in November. The British currency slid to as low as $1.2834, down 0.57 percent on the day. Immediate resistance can be seen at 1.2967 (Higher BB), an upside break can trigger rise towards 1.2319 (21st Oct high).On the downside, immediate support is seen at 1.2785 (Lower BB), a break below could take the pair towards 1.2700 (Psychological level).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Friday, unable to reduce this week's decline as oil prices fell and a strike at Canada's biggest railroad threatened to weigh on the country's economic growth.The price of oil, one of Canada's major exports, pulled back from two-month highs as concern over U.S.-China trade talks overshadowed expectations that major producers would extend production cuts. U.S. crude oil futures settled 81 cents lower at $57.77 a barrel.At (2100 GMT), the Canadian dollar was trading nearly unchanged at 1.3290 to the greenback . Immediate resistance can be seen at 1.3328 (20th Nov high)), an upside break can trigger rise towards 1.3400 (Psychological level).On the downside, immediate support is seen at 1.3256 (9 DMA), a break below could take the pair towards 1.3200 (Psychological level).
USD/JPY: The dollar strengthened against the Japanese yen on Friday, after data showed U.S. factory and services activity quickened in November in a sign of the continued resilience of the U.S. economy in the face of the U.S.-China trade war and other headwinds. IHS Markit said its “flash” purchasing managers index (PMI) for manufacturing rose to 52.2 in November from a final reading of 51.3 in October, while its preliminary services PMI increased to 51.6 this month from 50.6 last month. Strong resistance can be seen at 108.74 (200 DMA), an upside break can trigger rise towards 109.00 (Psychological level).On the downside, immediate support is seen at 108.26 (14th Nov low), a break below could take the pair towards 107.71 (100 DMA).
Equities Recap
European shares logged their best day in three weeks on Friday, as upbeat data out of major eurozone economies, as well as positive rhetoric on a U.S.-China trade deal, ended a dour week on a positive note.
The UK's benchmark FTSE 100 closed up by 1.22 percent, Germany's Dax ended up by 0.20 percent, and France’s CAC finished the up by 0.20 percent.
Wall Street advanced on Friday as both Washington and Beijing made positive comments on the potential for a trade deal between the world’s two biggest economies and upbeat domestic economic data helped to ease investor worries.
Dow Jones closed up by 0.39 percent, S&P 500 ended up 0.22 percent, Nasdaq finished the day up by 0.16 percent.
Treasuries Recap
Most U.S. Treasury yields edged higher on Friday, boosted by upbeat U.S. data showing a pick-up in manufacturing and services activity.
U.S. 10-year note yields were little changed at 1.774%, from Thursday's 1.772%. Yields on 30-year bonds, on the other hand, were slightly lower at 2.225%, from Thursday's 2.231%.On the short end of the curve, U.S. two-year yields rose to 1.613%, from 1.605% on Thursday.
Commodities Recap
Gold prices edged lower on Friday as the dollar and Treasuries strengthened after data showed U.S.manufacturing output and services activity picked up, limiting demand for the yellow metal.
Spot gold was down 0.1% at $1,462.97 per ounce by 1:21 p.m. ET (1921 GMT), and was set for a 0.3% weekly loss.U.S. gold futures settled unchanged at $1,463.60 per ounce.
Oil prices fell on Friday, pulling back from two-month highs as concern over U.S.-China trade talks overshadowed expectations of an extension to OPEC+ production cuts.
Brent crude futures eased 52 cents to $63.44 a barrel by 11:49 a.m. EDT (1649 GMT), after hitting a high of $64.27, while West Texas Intermediate crude (WTI) fell 69 cents to $57.89, dropping from its session high of $58.74.
