Market Roundup
• U.S.-China trade talks to resume in Beijing next week -White House
• N.Y. Fed reduces U.S. Q1 GDP growth view to 2.2 pct
• EU urges May to seize Labour opening as way out of Brexit impasse
• Fed's Daly says slowing economy could help prevent recession
• Acting U.S. attorney general snaps at Democrats over Russia probe
• US Dec Consumer Credit, 16.55 bln, 17.00 bln forecast, 22.15 bln previous, 22.41 bln revised
• CA Jan House Starts, Annualized, 208.0k, 205.0k forecast, 213.4k previous, 213.6k revised
• CA Jan Unemployment Rate, 5.8%, 5.7% forecast, 5.6% previous
• CA Jan Employment Change, 66.8k, 8.0k forecast, 9.3k previous, -1.3k revised
• CA Jan Participation Rate, 65.6%, 65.4% forecast, 65.4% previous
Looking Ahead - Economic Data (GMT)
• 11 Feb China Jan FX Reserves (Monthly), 3.082 tln forecast, 3.073 tln previous
Looking Ahead - Events, Other Releases (GMT)
• (3:30 ET/ 08:30 GMT) ECB Vice President Luis de Guindos to deliver speech at the Deusto Business School in Madrid, Spain.
Currency Summaries
EUR/USD: The euro slipped lower against the U.S. dollar on Friday, as stronger dollar and worries about the outlook of the euro zone economy weighed on the single currency. The greenback has benefited from flagging global risk appetite, soured by investors' uncertainty over U.S.-China trade negotiations, slowing global growth, and Britain's chaotic exit from the European Union due next month. The euro was down 0.15 percent at $1.1323. The dollar failed to make the most of the euro's weakness, however. It traded a shade higher against its major rivals as trade tensions remained dominant. Immediate resistance can be seen at 1.1358 (50% retracement level), an upside break can trigger rise towards 1.1389 (61.8% retracement level).On the downside, immediate support is seen at 1.1321 (38.2% retracement level), a break below could take the pair towards 1.1280 (23.6% retracement level).
GBP/USD: British pound declined against the dollar on Friday, as stronger dollar and Brexit concerns weighed on British pound. The pound has strengthened in 2019 on expectations that a disorderly no-deal Brexit can be averted but worry among investors has returned with less than two months until Britain is due to exit the EU and no obvious path to a deal in sight.The pound fell to low of $1.2922, down 0.2 percent on the day. Immediate resistance can be seen at 1.2990 (21 DMA), an upside break can trigger rise towards 1.3048 (11 DMA).On the downside, immediate support is seen at 1.2895 (100 DMA), a break below could take the pair towards 1.2852 (Feb 7th Low).
USD/CAD: The Canadian dollar strengthened against U.S. counterpart on Friday, as stronger-than-expected gain for domestic jobs supported the Bank of Canada's view that the economy is healthy. Canada added 66,800 jobs in January, the second month of outsized gains in the last three, as services-producing sector jobs soared, Statistics Canada reported. Analysts had forecast a gain of 8,000 positions. At (2005 GMT), the Canadian dollar was last trading 0.29 percent higher at 1.3270 to the greenback. Immediate resistance can be seen at 1.3335 (50 DMA), an upside break can trigger rise towards 1.3374 (Jan 23rd high).On the downside, immediate support is seen at 1.3211 (100 DMA), a break below could take the pair towards 1.3182 (9 DMA).
USD/JPY: The dollar little changed against Japanese yen on Friday, as investors adopted a wait-and-see approach as they tracked developments in U.S.-China trade talks. U.S. negotiators are preparing to press China next week on longstanding demands that it reform how it treats American companies' intellectual property in order to seal a trade deal that could prevent tariffs from rising on Chinese imports. At (2005 GMT), the dollar was last trading 0.03 lower versus the Japanese yen at 109.77. Strong resistance can be seen at 110.59 (50 DMA), an upside break can trigger rise towards 111.00 (Psychological level).On the downside, immediate support is seen at 109.58 (21 DMA), a break below could take the pair towards 109.14 (61.8% retracement level).
Equities Recap
European stocks slipped again on Friday and put an end to five straight weeks of gains as fears about an economic slowdown in the euro zone and a potential full-blown Sino/U.S. trade war added to disappointing earnings from blue chips.
UK's benchmark FTSE 100 closed down by 0.3 percent, the pan-European FTSEurofirst 300 ended the day down by 0.48 percent, Germany's Dax ended down by 1 percent, France’s CAC finished the day down by 0.5 percent.
U.S. stocks ended near flat on Friday as skepticism over the United States and China reaching a trade deal before a looming deadline added to concerns over slowing global growth.
Dow Jones closed down by 0.26 percent, S&P 500 ended up by 0.07 percent, Nasdaq finished the day up by 0.14 percent.
Treasuries Recap
U.S. Treasury yields fell for a fourth straight session on Friday, weighed down by global equity market losses on concerns that there would be no trade deal between the United States and China by the March 1 deadline.
U.S. 10-year note yields fell to 2.632 percent , from 2.654 percent late on Thursday.
U.S. 30-year bond yields were also down, at 2.973 percent , from 3.006 percent on Thursday. Thirty-year yields earlier fell to a one-month low of 2.971 percent.
Commodities Recap
Gold rose on Friday as a gloomy global economic outlook dented risk appetite, but a firm dollar stemmed bullion's advance and kept the metal on track for its first weekly decline in three.
Spot gold was up 0.3 percent at $1,315.03 per ounce at (2015 GMT), having recovered from an over one-week low of $1,302.11 touched on Thursday. U.S. gold futures settled up 0.3 percent at $1,318.50.
Oil futures were little changed on Friday, on track for losses on the week in renewed concerns about slowing global demand.
Brent crude futures gained 27 cents to $61.90 a barrel by 12:56 p.m. EST (1756 GMT). On the week, they were set for a loss of around 1.5 percent.
U.S. West Texas Intermediate crude futures fell 5 cents to $52.64 a barrel and approached a weekly slump of nearly 5 percent, the steepest this year.
