Market Roundup
• US Dec Core PCE Price Index YY, 1.9%, 1.9% forecast, 1.9% previous
• US Dec Core PCE Price Index MM, 0.2%, 0.2% forecast, 0.1% previous, 0.2% revised
• US Dec Consumption, Adjusted MM, -0.5%, -0.2% forecast, 0.4% previous, 0.6% revised
• US Jan Personal Income MM, -0.1%, 0.3% forecast, 0.3% previous, 1.0% revised
• US Dec Personal Consump Real MM, -0.6%, 0.3% forecast, 0.5% revised
• US Feb Markit Mfg PMI SA, 52.6, 53.0 previous
• US Feb Markit Mfg PMI Final, 53.0, 53.7 previous
• US Feb ISM Manufacturing PMI, 54.2, 55.5 forecast, 56.6 previous
• US Feb U Mich Sentiment Final, 93.8, 95.7 forecast, 95.5 previous
• CA Q4 GDP QQ, 0.1%, 0.5% previous
• CA Q4 GDP QQ, Annualized, 0.4%, 1.2% forecast, 2.0% previous
• CA Q4 GDP YY, 1.57%, 2.06% forecast 1.90% previous
• CA Dec GDP MM, -0.1%, 0.0% forecast -0.1% previous
• IMF'S Lagarde says messy Brexit could have "significant consequences"
Looking Ahead - Economic Data (GMT)
• 4 Mar 00:30 Australia Jan Building
Approvals, 0.0% forecast -8.4% previous
• 4 Mar 00:30 forecast Q4 Business Inventories, 0.4% forecast, 0.0% previous
Looking Ahead - Events, Other Releases (GMT)
• No major economic events scheduled
Currency Summaries
EUR/USD: The euro edged lower against the U.S. dollar on Friday, as better-than-expected U.S. economic data and uncertainty over a Sino-U.S. trade deal putting some pressure on the euro. The United States had been poised to hike tariffs on some $200 billion in Chinese imports to 25 percent from 10 percent after Friday if no deal was reached by then. But on Feb. 24, President Donald Trump announced that he would delay the hike in duties due to advances in negotiations.The euro was down 0.05 percent at $1.1364. An index that tracks the dollar versus a basket of six major currencies was up 0.29 at 96.50 after hitting a 16-month high of 97.693 on Monday. Immediate resistance can be seen at 1.1393 (50% retracement level), an upside break can trigger rise towards 1.1420 (Feb 28th high).On the downside, immediate support is seen at 1.1354 (DMA), a break below could take the pair towards 1.1300 (Psychological level).
GBP/USD: The pound slipped against dollar on Friday, after survey data showed British factories slashed jobs in February, but still enjoyed its biggest weekly rise in a month on receding fears that Britain will leave the European Union without a deal. The British currency surged to multi-month highs this week after Prime Minister Theresa May said lawmakers would get to vote on a delay to Brexit if they choose not to approve her withdrawal agreement. The pound fell 0.61 percent lower at $1.3179 . For the week, it was up 1.5 percent. Immediate resistance can be seen at 1.3248 (50% retracement level), an upside break can trigger rise towards 1.3354 (61.8% retracement level).On the downside, immediate support is seen at 1.3148 (38.2% retracement level), a break below could take the pair towards 1.3020 (23.6% retracement level).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Friday, on news that Canada's economy grew at a slower pace than expected in the fourth quarter.Canada's gross domestic product grew at an annualized rate of 0.4 percent in the fourth quarter, down from 2.0 percent in the third quarter and slower than the 1.2 percent rate expected by analysts, largely due to lower export prices of crude oil and crude bitumen, Statistics Canada said on Friday.GDP edged down 0.1 percent in December as a result of reduced output across most goods-producing industries. At (2055 GMT), the Canadian dollar was trading at 1.3296 to the greenback, down about 0.96 percent from its level late on Thursday. Immediate resistance can be seen at 1.3304 (50 DMA), an upside break can trigger rise towards 1.3354 (61.8% retracement level).On the downside, immediate support is seen at 1.3148 (38.2% retracement level), a break below could take the pair towards 1.3020 (23.6% retracement level).
USD/JPY: The dollar rose on Friday, hitting 10-week-highs against the yen, as risk appetite improved amid a more upbeat outlook on some major economies of the world and the prospect of a trade deal between China and the United States. Friday's slew of weaker-than expected U.S. economic data weighed on the dollar initially, especially the manufacturing index, but the greenback rallied to trade higher on the day. In afternoon trading, the dollar index rose 0.25 percent to 96.46. For the month of February, the dollar index was up 0.4 percent.The dollar was 0.26 higher versus the Japanese yen at 111.94. Strong resistance can be seen at 112.14 (38.2% retracement level), an upside break can trigger rise towards 112.61 (Dec 20th High).On the downside, immediate support is seen at 111.21 (11 DMA), a break below could take the pair towards 111.00 (Psychological level).
Equities Recap
European shares rose to five-month highs on Friday, starting the month on a strong footing, as a fresh batch of corporate updates fuelled risk appetite, even after U.S. President Donald Trump raised some concerns over trade talks with China.
UK's benchmark FTSE 100 closed up by 0.4 percent, the pan-European FTSEurofirst 300 ended the day up by 0.35 percent, Germany's Dax ended down by 0.7 percent, France’s CAC finished the day up by 0.5 percent.
The S&P 500 and Dow snapped three-day losing streaks on Friday as optimism about the prospects for a U.S.-China trade agreement overshadowed downbeat U.S. and Chinese manufacturing data.
Dow Jones closed up by 0.43 percent, S&P 500 ended up by 0.69 percent, Nasdaq finished the day up by 0.82 percent.
Treasuries Recap
U.S. Treasury yields rose on Friday as investors sold off safe-haven assets on hopes for a U.S. trade deal with China and shrugged off soft economic data reports whose release was delayed by the government shutdown.
The 10-year Treasury yield was last up 4.4 basis points at 2.755 percent, its highest in more than a month. Yields also were higher at either end of the curve, with the two-year yield up 4.5 basis points at 2.557 percent and the 30-year up 4.2 basis points at 3.126 percent.
Commodities Recap
Gold prices on Friday fell more than 1 percent to their lowest since the January, headed for their biggest weekly decline in more than 1-1/2 years, as the dollar strengthened and global stock advances spurred risk-taking.
Spot gold was at $1,293.38 an ounce at 2:18 pm ET (1918 GMT), having fallen below the key 1,300 level for the first time since Jan. 28. It is down about 2.6 percent so far this week, the most since May 2017.
Oil prices settled down about 2 percent on Friday, ending around 3 percent lower on the week as concerns over global demand growth after weak U.S. manufacturing data overshadowed OPEC-led supply cuts and sanctions on Venezuela and Iran.
U.S. West Texas Intermediate crude (WTI) futures fell $1.42, or 2.5 percent, to settle at $55.80 per barrel, after hitting $57.88, its highest since mid-November.
Global benchmark Brent crude futures for May settled $1.24, or 1.9 percent, lower at $65.07 a barrel.
