Market Roundup
•Canada March Core Retail Sales (MoM) 4.3%, 2.2% forecast, 4.8% previous
•Canada March Retail Sales (MoM) 3.6%, 2.3% forecast, 4.8% previous
•US May Services PMI 70.1, 64.5 forecast, 64.7 previous
•US May Markit Composite PMI 68.1 ,63.5 previous
•US May Manufacturing PMI 61.5, 60.2 forecast, 60.5 previous
•US May Existing Home Sales (MoM) -2.7%, 2.0% forecast, -3.7% previous
•US Apr Existing Home Sales 5.85M,6.09M forecast, 6.01M previous
•EU May Consumer Confidence -5.1,-6.8 forecast, -8.1 previous
Looking Ahead - Economic Data (GMT)
•No economic data ahead
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro declined on Friday as dollar was boosted by encouraging U.S. manufacturing data. The U.S. currency found some support after data showed U.S. factory activity gathered speed in early May amid strong domestic demand. The dollar index, measuring the greenback against a basket of six currencies, was 0.222% higher at 89.993. The index, which hit a four-month low earlier in the session, was on pace for a loss of 0.4% for the week. The euro down 0.38% to $1.2179. Immediate resistance can be seen at 1.2232 (23.6%fib), an upside break can trigger rise towards 1.2300 (Psychological level).On the downside, immediate support is seen at 1.2192 (5DMA), a break below could take the pair towards 1.2159(38.2%fib).
GBP/USD: Sterling declined against the dollar on Friday as stronger-than-expected U.S. manufacturing data boosted dollar. Data firm IHS Markit said its flash U.S. manufacturing PMI increased to 61.5 in the first half of this month. That was the highest reading since October 2009, and followed a final reading of 60.5 in April. Economists had forecast the index dipping to 60.2 in early May. Sterling was last trading at $1.4144, down 0.02% on the day. Immediate resistance can be seen at 1.4224(23.6%fib), an upside break can trigger rise towards 1.4250 (Higher BB).On the downside, immediate support is seen at 1.4159(5DMA), a break below could take the pair towards 1.4097(38.2%fib).
USD/CAD: The Canadian dollar rose against its U.S. counterpart on Friday, notching its biggest gain since the start of the year, as investors bet that global central banks would try to ease the economic impact of the coronavirus outbreak. At (2153 GMT), the Canadian dollar was trading 0.4% higher at 1.3324 to the greenback, its biggest gain since Dec. 31 last year. The currency, which on Friday hit its weakest intraday level in nearly nine months at 1.3465, traded in a range of 1.3315 to 1.3445. Immediate resistance can be seen at 1.3347 (5 DMA), an upside break can trigger rise towards 1.3438 (Daily high).On the downside, immediate support is seen at 1.3295 (11 DMA), a break below could take the pair towards 1.3249 (30 DMA).
USD/JPY: The dollar edged higher against the yen on Friday after data showed U.S. factory activity rose in early May. Data firm IHS Markit said its flash U.S. manufacturing PMI increased to 61.5 in the first half of this month, a reading that was the highest since the survey was expanded in October 2009 to cover all manufacturing industries. The dollar was trading up 0.15% on the yen at 108.91. Strong resistance can be seen at 108.92(50%fib), an upside break can trigger rise towards 109.10 (50DMA).On the downside, immediate support is seen at 108.49(61.8%fib), a break below could take the pair towards 108.22 (Lower BB).
Equities Recap
European stocks rose on Friday, as Swiss luxury goods maker Richemont jumped after its results and accelerating business growth in the euro zone kept investors cautiously optimistic in the face of rising inflation worries.
UK's benchmark FTSE 100 closed down by 0.02 percent, Germany's Dax ended up by 0.44 percent, France’s CAC finished the day up by 0.68 percent.
Wall Street's main indexes rose on Friday, extending a recovery from the previous session, as strong U.S. factory and services activity surveys lifted the mood at the end of a volatile week of trading.
Dow Jones closed up by 0.36 percent, S&P 500 closed down by 0.08 percent, Nasdaq settled down by 0.21% percent.
Treasuries Recap
Treasury yields slid on Friday as the market shrugged off a report showing U.S. factory activity rose in early May to its highest level in more than a decade and Federal Reserve officials talked about when to discuss tapering bond purchases.
The yield on 10-year Treasury notes was down 0.9 basis point to 1.625%, well off a more than one-year high of 1.776% reached in late March.
Commodities Recap
Gold prices inched lower on Friday as the dollar rebounded after robust U.S. manufacturing data, although bullion was still on track to register a third straight weekly gain.
Spot gold eased 0.1% to $1,876.42 per ounce by 1:43 p.m. EDT (1743 GMT) but prices were headed for a 1.9% weekly gain, helped by subdued U.S. Treasury yields. U.S. gold futures settled down 0.3%, at $1,876.70.
Oil prices jumped 2% on Friday after three days of losses, driven higher as a storm formed in the Gulf of Mexico, but were on track for a weekly fall as investors braced for the return of Iranian crude supplies after officials said Iran and world powers made progress a nuclear deal.
Brent crude futures settled up $1.33, or 2%, to $66.44 a barrel, while U.S. West Texas Intermediate was at $63.54 a barrel, up $1.64, or 2.65%.
