Market Roundup
•Spanish Apr HICP (YoY) 2.0%, 1.9% forecast, 1.2% previous
•Spanish Apr CPI (MoM) 1.2%, 1.2% forecast, 1.0% previous
•Spanish Apr CPI (YoY) 2.2%, 2.2% forecast, 1.3% previous
• Spanish Apr HICP (MoM) 1.1%, 1.1% forecast, 1.9% previous
Looking Ahead - Economic Data (GMT)
•12:30 Canada New Motor Vehicle Sales (MoM) 96.0% previous
•12:30 Canada March Manufacturing Sales (MoM) 3.5% forecast, -1.6% previous
•12:30 US Apr Retail Sales (YoY) 27.85% previous
•12:30 US Apr Import Price Index (MoM) 0.6% forecast, 1.2% previous
•12:30 US Apr Export Price Index (MoM) 0.6% forecast, 2.1% previous
•12:30 US Apr Retail Sales (MoM) 1.0%,9.7% previous
•12:30 US Apr Core Retail Sales (MoM) 0.7%,8.4% previous
•12:30 US Apr Retail Sales Ex Gas/Autos (MoM) 8.2% previous
•13:15 US Apr Manufacturing Production (MoM) 0.4% forecast, 2.7% previous
•13:15 US Industrial Apr Production (YoY) 1.02% previous
•14:00 US May Michigan Current Conditions 99.6 forecast, 97.2 previous
•14:00 US May Michigan 5-Year Inflation Expectations 2.70% previous
•14:00 US May Michigan Consumer Sentiment 90.4 forecast, 88.3 previous
•14:00 US Mar Retail Inventories Ex Auto 0.6% previous
•14:00 US May Michigan Consumer Expectations 85.0 forecast, 82.7 previous
Looking Ahead - Economic events and other releases (GMT)
•No events ahead
Fxbeat
EUR/USD: The euro edged higher on Friday as greenback dipped concerns that higher-than-expected U.S. consumer price may lead to sustained inflation and a possible tightening of monetary policy. But reassuring comments from the U.S. Federal Reserve limited greenbacks weakness against euro. Investor awaited retail sales and industrial production, which is likely to give further clues about the extent of the economic recovery. The euro was up 0.20 percent at $1.2080. Immediate resistance can be seen at 1.2102(38.2%fib), an upside break can trigger rise towards 1.2171(Higher BB).On the downside, immediate support is seen at 1.2036 (50%fib), a break below could take the pair towards 1.2009(30DMA).
GBP/USD: Sterling was on track for a second week of gains against the dollar on Friday, consolidating above $1.40 as the U.S. currency took a breather from a recent rally.The pound is up 1.8% against the dollar since the start of May, aided by a more hawkish Bank of England which has begun tapering asset purchases, as well as Britain's vaccination drive that has enabled a gradual reopening of the economy. By 11:30 GMT on Friday, sterling was up 0.1% against the dollar at $1.4075, off a nearly three-month high of $1.4167 hit earlier this week. Against the euro, sterling was 0.2% lower at 86.15 pence. Immediate resistance can be seen at 1.4084 (Daily high), an upside break can trigger rise towards 1.4188 (23.6%fib).On the downside, immediate support is seen at 1.3995 (38.2%fib), a break below could take the pair towards 1.3967 (11DMA).
USD/CHF: The dollar declined against the Swiss franc on Friday after Federal Reserve officials helped calm concerns about a quick tightening of policy in response to accelerating U.S. inflation. The greenback, seen as a safe haven in times of market volatility, was down a third of a percent against a basket of currencies/.Federal Reserve officials have played down expectations of tighter policy, stressing price rises from the reopening of the economy should be temporary.At (GMT 11:40), greenback dipped 0.18% versus the Swiss franc to 0.9033. Immediate resistance can be seen at 0.9057 (38.2%fib), an upside break can trigger rise towards 0.9126(50%fib).On the downside, immediate support is seen at 0.9000(Lower BB), a break below could take the pair towards 0.8977(23.6%fib).
USD/JPY: The dollar declined against the Japanese yen on Friday after U.S. Federal Reserve officials said there would be no imminent move to tighten monetary policy in the world’s biggest economy. The U.S. central bank has pledged to keep interest rates low until the economy reaches full employment, and inflation is on track to “moderately” exceed the 2% level for some time. Looking ahead, traders will wait for the release of a fresh batch of U.S. data including April retail sales, industrial production and capacity utilisation, while the Dallas Federal Reserve President is also set to speak . Strong resistance can be seen at 109.82 (23.6%fib), an upside break can trigger rise towards 110.00(Psychological level).On the downside, immediate support is seen at 109.29 (38.2%fib), a break below could take the pair towards 108.88 (50%fib).
Equities Recap
European shares rose on Friday, as investors picked up beaten down stocks after rising inflation worries led to sharp losses earlier this week.
At (GMT 11:50),UK's benchmark FTSE 100 was last trading down at 2.55 percent, Germany's Dax was down by 2.37percent, France’s CAC was last down by 2.23 percent.
Commodities Recap
Gold prices edged higher on Friday, as the U.S. dollar pulled back from one-week highs after U.S. Federal Reserve officials downplayed an imminent rise in interest rates despite a sharp rise in inflation.
Spot gold was up 0.5% at $1,835 per ounce by 0921 GMT. The metal gained has 0.3% this week. U.S. gold futures rose 0.6% to $1,835.30.
Oil prices rose on Friday, reversing some of the previous day's sharp losses as stock markets strengthened, though gains were capped by the coronavirus situation in major oil consumer India and the restart of a fuel pipeline in the United States.
Brent crude oil futures were up 66 cents, or 1%, at $67.71 a barrel by 0957 GMT and West Texas Intermediate (WTI) crude was up 63 cents, or 1%, at $64.45.
