Market Roundup
• Canada Oct Housing Starts 202.0K, 221.2K forecast 221.1K previous
• Canada Sep Building Permits (MoM) -6.5%,-2.0% forecast, 5.6% previous
• Canada Oct Employment Change -1.8K, 15.9K forecast, 53.7K previous
• Canada Full Employment Change -16.1K, 70.0K previous
• Canada Oct Part Time Employment Change 14.3K, -16.3K previous
• Canada Oct Participation Rate 65.7%,65.7% forecast, 65.7% previous
• Canada Oct Unemployment Rate 5.5%,5.5% forecast, 5.5% previous
• US Nov Michigan 5-Year Inflation Expectations 2.40%,2.30% previous
• US Nov Michigan Consumer Expectations 85.9, 84.9 forecast, 84.2 previous
• US Nov Michigan Consumer Sentiment 95.7, 95.9 forecast, 95.5 previous
• US Nov Michigan Current Conditions 110.9, 112.5 forecast, 113.2 previous
• US Wholesale Inventories (MoM) -0.4%,-0.3% forecast, 0.1% previous
Looking Ahead - Economic Data (GMT)
• 01:30 China Oct CPI (YoY) 3.3% forecast, 3.0% previous
• 01:30 China Oct CPI (MoM) 0.7% forecast, 0.9% previous
• 01:30 China Oct PPI (YoY) -1.5%,-1.2% previous
Looking Ahead - Events, Other Releases (GMT)
No significant events
Currency summaries
EUR/USD: The euro slipped lower against the U.S. dollar on Friday, as greenback benefited from news that China and the U.S. had agreed to roll back tariffs to end their bitter trade war. Sentiment for the dollar is like to remain favourable, as de-escalation in the U.S.-China trade war removes a huge risk to the global economic growth. At (GMT 18:37), the euro was down 0.26 percent at $1.1021.The dollar index, which measures the greenback against six major currencies, was 0.24 percent higher at 98.37. Immediate resistance can be seen at 1.1105 (9 DMA), an upside break can trigger rise towards 1.1190 (Higher BB).On the downside, immediate support is seen at 1.1010 (Higher BB), a break below could take the pair towards 1.0964 (Sep 23rd low).
GBP/USD: The British pound declined against the dollar on Friday, as stronger dollar and caution ahead of Britain’s Dec. 12 election weighed on British pound. The pound was unaffected by news that Scottish First Minister Nicola Sturgeon would seek approval to form a “progressive alliance” to keep the Conservatives out in the event of a hung parliament. The British currency slid to as low as $1.2777, down 0.26 percent on the day. Immediate resistance can be seen at 1.2840 (5 DMA), an upside break can trigger rise towards 1.2900 (Psychological level).On the downside, immediate support is seen at 1.2764 (300 DMA), a break below could take the pair towards 1.2698 (Lower BB).
USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Friday, as oil prices slipped and the U.S. dollar was broadly stronger against most major peers. U.S. crude oil futures were down 2.1% at $55.95 a barrel. At (1908 GMT), the Canadian dollar was trading 0.4% lower at 1.3222 to the greenback. The currency touched its weakest intraday level since Oct. 16 at 1.3237.Immediate resistance can be seen at 1.3237 (Daily High), an upside break can trigger rise towards 1.3274 (200 DMA).On the downside, immediate support is seen at 1.3208 (50 DMA), a break below could take the pair towards 1.3143 (21 DMA).
USD/JPY: The U.S. dollar edged lower against the yen on Friday, as conflicting signals from China and the United States on progress made in trade talks boosted demand for Japanese yen. Multiple sources familiar with the talks said the plan faced fierce internal opposition at the White House and from outside advisers.At (GMT 19:18),the dollar was 0.09 percent lower versus the Japanese yen at 109.17. Strong resistance can be seen at 109.49 (Daily High), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 109.00 (5 DMA), a break below could take the pair towards 108.77 (11 DMA).
Equities Recap
European shares broke a five-day winning streak on Friday after U.S. President Donald Trump said he has not agreed to roll back tariffs on China, adding to uncertainties on whether the two sides were really getting close to signing a partial deal.
UK's benchmark FTSE 100 closed down by 0.63 percent, Germany's Dax ended down by 0.46 percent, France’s CAC finished the day down by 0.02 percent.
Wall Street halted a record run on Friday as U.S. President Donald Trump contradicted reports that the United States and China would roll back existing tariffs.
At ( GMT 19:29) Dow Jones was down by 0.21 percent, S&P 500 was down 0.03 percent, Nasdaq was up by 0.14 percent.
Treasuries Recap
U.S. Treasury yields held just below three-month highs on Friday as investors evaluated the likelihood that the United States and China would reach a deal to roll back tariffs, as officials made contradictory statements on the issue.
Benchmark 10-year note yields rose as high as 1.973% on Thursday on optimism a deal would be reached, the highest since Aug. 1. On Friday, the yields traded just below this level at 1.933%.
Commodities Recap
Gold prices fell on Friday and were on track for their biggest weekly decline in almost 3 years as a stronger dollar weighed, while optimism around U.S.-China trade talks dented bullion’s safe-haven appeal.
Spot gold was down 0.6% at $1,458.52 per ounce at 1309 GMT, poised for its biggest weekly drop - about 3.7% - since November 2016. Prices earlier fell to their lowest since Aug. 5 at $1,455.80.U.S. gold futures fell 0.5% to $1,459.70.
Oil prices pared losses on Friday, after earlier falling more than 1% following comments from U.S. President Donald Trump that he has not agreed to roll back tariffs on China.
Brent crude futures rose 3 cents to $62.32 a barrel by 1:23 p.m. EST (1823 GMT). West Texas Intermediate (WTI) crude fell 7 cents to $57.08 a barrel.
