Market Roundup
•Focus on U.S. CPI data on Tuesday
•Canada Jan Employment Change 37.3K,16.0K forecast,0.1K previous
•Canada Jan Participation Rate 65.3% ,65.4% previous
•Canada Jan Unemployment Rate 5.7% ,5.9% ,5.8% previous
•Canada Jan Full Employment Change -11.6K ,-23.5K previous
•Canada Jan Avg hourly wages Permanent employee 5.3%, 5.7% previous
•Canada Jan Part Time Employment Change 48.9K ,23.6K previous
•U.S. Baker Hughes Oil Rig Count 499 ,499 previous
•U.S. Baker Hughes Total Rig Count 623 ,619 previous
Looking Ahead Economic Data(GMT)
•No Data Ahead
Looking Ahead Events And Other Releases(GMT)
• No Significant Events Ahead
Currency Summaries
EUR/USD: The euro strengthened on Friday as dollar dipped ahead next week's U.S. inflation data for further indications regarding the timing of potential interest rate cuts by the Federal Reserve. Throughout this week, several Federal Reserve officials, including Chairman Jerome Powell, have stated their preference for additional evidence indicating a sustained decline in inflation before considering any rate cuts. On the data front ,German inflation eased in January to 3.1%, the federal statistics office said on Friday, confirming preliminary data. German consumer prices, harmonised to compare with other European Union countries, had risen by 3.8% year-on-year in December. The dollar index fell 0.07% to 104.04, while the euro was up 0.08% to $1.0785. Immediate resistance can be seen at 1.0832( 23.6%fib), an upside break can trigger rise towards 1.0873 ( Feb 1st high).On the downside, immediate support is seen at 1.0754(38.2%fib), a break below could take the pair towards 1.0701(50%fib).
GBP/USD: The pound steadied against the dollar as investors gained confidence in the Bank of England's decision to keep interest rates unchanged for the time being. Jonathan Haskel, a member of the Bank of England's policymaking committee, recently endorsed a move to raise interest rates. He expressed hope about signs of a possible lessening of inflationary pressures in Britain. However, he underlined the significance of gathering further information to validate this trend before making any changes to his viewpoint. Next week brings a deluge of UK data, including consumer inflation and economic growth, all of which might influence the interest rate forecast.Sterling was last up 0.07% versus the dollar at $1.2625.Immediate resistance can be seen at 1.2639(Daily high), an upside break can trigger rise towards 1.2670(23.6%fib).On the downside, immediate support is seen at 1.2595(38.2%fib), a break below could take the pair towards 1.2528(50%fib).
USD/CAD: The Canadian dollar edged lower versus its US counterpart on Friday as domestic employment data showed pay growth stalling in January. The Canadian economy generated 37,300 jobs in January, more than double economists expectations, although wage growth slowed somewhat. The Bank of Canada is closely scrutinizing the wage data as a crucial factor in determining the appropriate timing for potential rate cuts. The price of oil, one of Canada's major exports, rose 0.7% to $76.72 a barrel amid persistent tensions in the Middle East. The loonie was trading 0.1% down at 1.3475 to the greenback , pulling back from its highest intraday mark since last Friday at 1.3413. Immediate resistance can be seen at 1.3486 (38.2%fib), an upside break can trigger rise towards 1.2559 (23.6%fib).On the downside, immediate support is seen at 1.3435 (50% fib), a break below could take the pair towards 1.3368(61.8% fib).
USD/JPY: The dollar was little changed against the yen on Friday as traders tempered their expectations regarding the speed at which the Bank of Japan might raise interest rates and the timing of potential rate cuts by the Federal Reserve. Traders brushed aside revised U.S. monthly consumer prices, which showed a smaller increase than initially reported for December. Despite underlying inflation staying relatively higher, the mixed data did not influence the market's outlook on the timing of possible Federal Reserve rate cuts. BOJ Governor Kazuo Ueda said on Friday there was a high chance for easy monetary conditions to persist even after the central bank ends its negative interest rate policy. The dollar was little changed at 149.32 per yen .Strong resistance can be seen at 149.70(23.6%fib),an upside break can trigger rise towards 149.98(Higher BB).On the downside, immediate support is seen 149.00 (Psychological level)a break below could take the pair towards 147.93(38.2%fib).
Equities Recap
European shares ended slightly lower under pressure from rising yields and sliding L'Oreal shares.
UK's benchmark FTSE 100 closed down by 0.30 percent, Germany's Dax ended down by 0.22percent, France’s CAC finished the day down by 0.24 percent.
The S&P 500 ended over 5,000 for the first time on Friday, while the Nasdaq briefly traded above 16,000, boosted by megacaps and chip stocks, notably Nvidia, as investors bet on artificial intelligence technology and expected solid earnings reports.
Dow Jones closed down by 0.14% percent, S&P 500 closed up by 0.57% percent, Nasdaq settled up by 1.25% percent.
Commodities Recap
Gold fell on Friday and was on track for a weekly loss, pushed by rising Treasury yields, as investors anticipated next week's US inflation data for fresh clues on the timing of the Federal Reserve's interest rate cuts.
Spot gold was down 0.5% at $2,022.86 per ounce at 01:47 p.m. ET (1847 GMT) and fell 0.8% over the week.U.S. gold futures settled 0.4% lower at $2038.7.
Oil prices settled higher on Friday, rising approximately 6% on a week-on-week basis , driven by escalating concerns about Middle East supply disruptions.
Brent crude futures settled up 56 cents, or 0.7%, at $82.19 a barrel. U.S. West Texas Intermediate crude futures settled up 62 cents or 0.8%, at $76.84 a barrel.
