Market Roundup
• Canada Building Permits (MoM) (Oct): 14.9%, -1.4% forecast, 5.9% previous
• Canada Capacity Utilization Rate (Q3): 78.5%, 79.3% forecast, 77.6% previous
• Canada New Motor Vehicle Sales (MoM) (Oct): 163.5K, no forecast, 168.7K previous
• Canada Wholesale Sales (MoM) (Oct): 0.1%, -0.1% forecast, 0.6% previous
•US Baker Hughes Oil Rig Count: 414, no forecast, 413 previous
•US Baker Hughes Total Rig Count: 548, no forecast, 549 previou
Looking Ahead Economic Data (GMT)
•No data ahead
Looking Ahead Events And Other Releases (GMT)
•No events ahead
Currency Summaries
•EUR/USD : The euro was flat against dollar on Friday as investors braced for next week’s European Central Bank rate decision.Eurozone inflation rose to 2.2% in November, close to the ECB’s 2% target, while the economy grew about 1.5% over the past two quarters, suggesting no urgent changes in policy is required.The ECB is expected to keep interest rates unchanged next week, with eurozone inflation roughly in line with the central bank’s 2% medium-term target. On the data front, German inflation rose to 2.6% in November, the federal statistics office said on Friday, confirming preliminary data. Inflation, or consumer prices harmonised to compare with other European Union countries, stood at 2.3% year-on-year in October. Immediate resistance can be seen at 1.1752(Higher BB), an upside break can trigger rise towards 1.1791(23.6%fib).On the downside, immediate support is seen at 1.1670(50%fib), a break below could take the pair towards 1.1618(SMA20).
GBP/USD: Sterling eased against dollar on Friday after data showed the UK economy unexpectedly shrank in the three months to October. Britain's economy shrank unexpectedly in the three months to October, losing momentum in the fraught run-up to finance minister Rachel Reeves' budget, according to data on Friday that underscored bets on Bank of England interest rate cuts.The Office for National Statistics said gross domestic product contracted by 0.1% in the August-to-October period. Economists polled by Reuters had forecast a flat reading.In October alone, the economy contracted by 0.1%, against forecasts for a 0.1% rise. While single-month GDP figures are volatile and prone to revision, Friday's data means the economy hasn't grown since June.Friday's data casts doubt on the BoE's expectation that the economy will grow by around 0.3% in the fourth quarter as a whole.. Immediate resistance can be seen at 1.3423(Higher BB), an upside break can trigger rise towards 1.3524(38.2%fib).On the downside, immediate support is seen at 1.3349(Daily low), a break below could take the pair towards 1.3282(Dec 10th low).
USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Friday as investors bet that the Bank of Canada and the Federal Reserve would move in different directions next year in setting monetary policy. On the data front, Canadian wholesale trade grew by 0.1% in October from September on higher sales in the motor vehicle and motor vehicle parts and accessories subsector. Analysts had forecast a decline of 0.1%.Separate data showed October building permits climbing 14.9% and capacity utilization increasing to 78.5% in the third quarter. The price of oil , one of Canada's major exports, settled 0.3% lower at $57.38 a barrel as investors focused on a supply glut and potential Russia-Ukraine peace deal. Immediate resistance can be seen at 1.3850(50%fib), an upside break can trigger rise towards at 1.3900 (Psychological level).On the downside, immediate support is seen at 1.3742(Lower BB), a break below could take the pair towards 1.3718 (38.2%fib).
USD/JPY: The U.S. dollar edged higher on Friday as yen weakened ahead of next week's Bank of Japan meeting, where the broad expectation is for a rate hike. Markets are focused on comments from policymakers on how the rate path will look in 2026.The BoJ is widely anticipated to resume its cycle of rate increases after months of pausing to assess the impact of U.S. President Donald Trump’s tariff measures. With the current rate move already fully priced in, market attention is now focused on any guidance regarding the pace of future hikes and the likely peak of this tightening cycle.BoJ Governor Ueda gave an unusually direct speech earlier this month, clearly signaling a rate increase at the upcoming meeting .Immediate resistance can be seen at 156.06(SMA 20) an upside break can trigger rise towards 157.58 (23.6%fib) .On the downside, immediate support is seen at 154.64(Lower BB) a break below could take the pair towards 155.44 (38.2%fib).
Equities Recap
European shares reversed early gains to close lower on Friday, dragged down by Wall Street amid renewed fears of a potential AI bubble, wiping out earlier weekly gains sparked by optimism over the Fed’s rate cut.
UK's benchmark FTSE 100 closed down by 0.56 percent, Germany's Dax ended down by 0.45 percent, France’s CAC finished the day down by 0.21 percent.
The S&P 500 and Nasdaq closed lower by more than 1% on Friday, dragged down by tech stocks after Broadcom and Oracle raised AI bubble fears.
Dow Jones closed down by 0.51% percent, S&P 500 closed down by 1.07% percent, Nasdaq settled down by 1.69% percent.
Commodities Recap
Spot gold rose 0.3% to $4,293.43 per ounce, after scaling its highest level since October 21 earlier.U.S. gold futures settled 0.4% higher at $4,328.3.
Oil prices fell on Friday, ending the week down 4% as concerns over a supply glut and a potential Russia-Ukraine peace deal outweighed fears from the U.S. seizure of a Venezuelan oil tanker.
Brent crude futures settled 16 cents down at $61.12 a barrel, while U.S. West Texas Intermediate crude was down 16 cents at $57.44.Both benchmarks fell by about 1.5% on Thursday and have lost more than 4% this week.
