Market Roundup
• Trump threatens to close Mexico border, blames Democrats over shutdown
• US November Pending Sales Change MM, -0.7%, 0.7% forecast, -2.6% previous
• US November Pending Homes Index, 101.4, 102.1 previous
• US December Chicago PMI, 65.4, 62.0 forecast, 66.4 previous
• U.S. yields little changed; 10-year near 8-month lows as Wall Street stays volatile
• ECB's hawk Lautenschlaeger still sees rate hike in 2019 if data allows
• China allows first-ever U.S. rice imports ahead of trade talks
• China's monetary policy stance unchanged but policymaking to be flexible - official
• May's Brexit deal can get through parliament - UK foreign minister
• German inflation slows just as ECB dials back stimulus
Looking Ahead - Economic Data
• 31 Dec ( 19:30 ET/ 00:30 GMT) Australia Nov Private Sector Credit, 0.4% previous
• 31 Dec ( 19:30 ET/ 00:30 GMT) Australia Nov Housing Credit, 0.3% previous
• 31 Dec (20:00 ET/ 01:00 GMT) China Dec NBS Non-Mfg PMI, 53.4 previous
• 31 Dec (20:00 ET/ 01:00 GMT) China Dec NBS Manufacturing PMI, 49.9 forecast, 50.0 previous
• 31 Dec (20:00 ET/ 01:00 GMT) China Dec Composite PMI, 52.8 previous
Looking Ahead - Events, Other Releases
• No major economic events scheduled
Currency Summaries
EUR/USD: The euro edged higher against US dollar on Friday, as dollar weakened amid volatility in global stock markets and rising trade tensions. The dollar has gained against its most of its rivals in the last two weeks despite lower expectations of further interest rate hike from the Federal Reserve next year, but on Friday, investors dumped greenback. The euro was up 0.15 percent at $1.1445. An index that tracks the dollar versus a basket of six major currencies was down 0.21 at 96.37 after hitting a 16-month high of 97.693 on Monday. Immediate resistance can be seen at 1.1476 (100 DMA), an upside break can trigger rise towards 1.1517 (Ichimoku Cloud Top).On the downside, immediate support is seen at 1.1390 (9 DMA), a break below could take the pair towards 1.1344 (Dec 26th low).
GBP/USD: Sterling strengthened against the dollar on Friday, as concern among investors about volatile stock market and turmoil in Washington about a partial government shutdown weighed on greenback. The pound rose 0.45 percent to $1.2699 against dollar. Versus the euro, the pound was flat at 90.12 pence. Immediate resistance can be seen at 1.2719 (23.6% retracement level), an upside break can trigger rise towards 1.2792 (50 DMA).On the downside, immediate support is seen at 1.2634 (50% retracement level), a break below could take the pair towards 1.2596 (61.8% retracement level).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Friday, as fears of renewed escalation in the Sino-U.S trade war and high volatility in global equities weighed on Canadian dollar. The Canadian dollar was trading at C$1.3652 to the greenback, down 0.28 percent. The currency traded in a range of C$1.3584 to C$ C$1.3661. Immediate resistance can be seen at 1.3673 (Higher Bollinger Band), an upside break can trigger rise towards 1.3700 (Psychological level).On the downside, immediate support is seen at 1.3609 (5 DMA), a break below could take the pair towards 1.3526 (10 DMA).
USD/JPY: The dollar declined against Japanese yen on Friday, as concerns about a trade dispute between United States and China and wild swings in global stock markets weighed on risk appetite. The dollar was 0.72 lower versus the Japanese yen at 110.25. The dollar index, a gauge of the greenback against a basket of six major currencies, fell 0.22 percent to 96.35.Strong resistance can be seen at 110.58 (23.6% retracement level), an upside break can trigger rise towards 111.00 (200 DMA).On the downside, immediate support is seen at 110.00 (Psychological level), a break below could take the pair towards 109.75 (22nd Aug low).
Equities Recap
European shares clawed back losses on Friday, buoyed by a bounce on Wall Street as a turbulent week drew to a close and investors licked their wounds after the region's benchmark STOXX 600 sank to its lowest level since U.S. President Donald Trump's election.
UK's benchmark FTSE 100 closed up by 2.2 percent, the pan-European FTSEurofirst 300 ended the day up by 1.85 percent, Germany's Dax ended up by 1.7percent, France’s CAC finished the day up by 1.6 percent.
The S&P 500 ended marginally lower in a choppy session on Friday, but major indexes posted weekly gains for the first time in December following a wild few days of trading that saw equities rebound from a prolonged slide.
Dow Jones closed down by 0.34 percent, S&P 500 ended down 0.12 percent, Nasdaq finished the day up by 0.08 percent.
Treasuries Recap
U.S. Treasury yields slipped on Friday with 10-year yields hovering near eight-month lows as Wall Street remained volatile, with investors anxious about the economy and turmoil in Washington including a partial government shutdown.
Benchmark 10-year Treasury yields were down 0.3 basis point at 2.740 percent after touching 2.720 percent on Wednesday, which was the lowest level since April 2.
Two-year yields retested 2.526 percent earlier Friday, which was the lowest since July 2. They were marginally lower at 2.534 percent.
Commodities Recap
Gold prices held near six-month highs hit earlier on Friday, helped by a softer dollar, concerns over slowing economic growth and wild swings in equities, putting bullion on track for a second straight week of gains.
Spot gold was up 0.4 percent at $1,280.69 per ounce as of (2120 GMT), and up 1.8 percent so far this week. Earlier it rose to $1,282.09, the highest level since June 19.U.S. gold futures settled up 0.1 percent to $1,283 per ounce.
Oil prices steadied on Friday after a week of volatile trading ahead of the New Year holiday, supported by a rise in U.S. equity markets but pressured by worries about a global glut of crude.
Brent crude futures rose 4 cents to settle at $52.20 a barrel, off the session high of $53.80 a barrel.
U.S. West Texas Intermediate (WTI) crude futures rose 72 cents to settle at $45.33 a barrel, after earlier reaching $46.22 a barrel.
