Market Roundup
•US Corporate Profits (QoQ) 0.4%,2.7% previous
•US Apr Durables Excluding Defense (MoM) 0.0%,2.3% previous
•US Durables Excluding Transport (MoM) 0.4%,0.2% previous
•Canada Manufacturing Sales (MoM) 1.2%, -2.1% previous
•Canada Retail Sales (MoM) -0.2%, -0.1% forecast,-0.1% previous
•US Durable Goods Orders (MoM) 0.7%,-0.9% forecast, 2.6% previous
•US Apr Core Durable Goods Orders (MoM) 0.4%,0.1% forecast, 0.2% previous
•Canada Mar Core Retail Sales (MoM) -0.6%, 0.3% forecast,-0.3% previous
•US Apr Goods Orders Non Defense Ex Air (MoM) 0.3%,0.1% forecast,0.2% previous
•US May Michigan 5-Year Inflation Expectations 3.0%,3.1% forecast,3.0% previous
•US May Michigan 1-Year Inflation Expectations 3.3%,3.5% forecast,3.2% previous
•US May Michigan Consumer Expectations 68.8, 66.5 forecast,76.0 previous
•US May Michigan Consumer Sentiment 69.1, 67.4 forecast,77.2 previous
•US May Michigan Current Conditions 69.6, 68.8 forecast,79.0 previous
•US Atlanta Fed GDPNow (Q2) 3.5%3.6% forecast,3.6% previous
•U.S. Baker Hughes Oil Rig Count 497 previous
• U.S. Baker Hughes Total Rig Count 604 previous
Looking Ahead Economic Data (GMT)
•No Significant Data
Looking Ahead Events And Other Releases (GMT)
• No Significant Events
Currency Summaries
EUR/USD: The euro rose on Friday after data showed German economy grew first three months of 2024.The German economy grew by 0.2% in the first three months of 2024, the statistics office reported on Friday, confirming preliminary data.Despite declining inflation, household consumption did not recover in the first quarter, falling 0.4% on the previous quarter. Government expenditure was also 0.4% lower than in the previous quarter, the data showed. The euro was helped off a nine-month low to the pound on Thursday when a key European wage indicator picked up. The euro was up 0.3% at $1.08495 late on Friday. Immediate resistance can be seen at 1.0886(23.6%fib), an upside break can trigger rise towards 1.0908(Higher BB).On the downside, immediate support is seen at 1.0830 (38.2% fib), a break below could take the pair towards 1.0796(50% fib).
GBP/USD: The pound held broadly steady on Friday as surprise announcement this week of a July general election kept sterling near two-month highs. The retail sales volume dropped 2.3 percent on a monthly basis, following a revised 0.2 percent drop in March, the Office for National Statistics said. Economists had forecast a 0.5 percent drop for April. So far in May, sterling is up against most major currencies and heading for its best monthly performance since November against the dollar, with a gain of 1.6%. Sterling held around two-month highs, trading at $1.2734, shrugging off weak British retail sales. The dollar was down 0.3% at 104.72 against a basket of currencies on Friday, after advancing in five of the last six trading sessions. Immediate resistance can be seen at 1.2755(23.6%fib), an upside break can trigger rise towards 1.2787(Higher BB).On the downside, immediate support is seen at 1.2686(38.2% fib), a break below could take the pair towards 1.2623(50% fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Friday, clawing back much of its weekly decline, as investor sentiment picked up and preliminary domestic data showed retail sales rebounding in April. The currency rose as a University of Michigan survey showed consumers' inflation expectations improved in late May, boosting prospects the Federal Reserve would begin easing policy by September. Canadian retail sales contracted for a third consecutive month in March, falling 0.2%, underscoring the impact of high interest rates on consumer spending. Still, a preliminary estimate of April's sales figure showed sales were likely to increase by 0.7%.The loonie was last trading 0.6% higher at 1.3650 to the U.S. dollar . Immediate resistance can be seen at 1.3696 (38.2% fib), an upside break can trigger rise towards 1.3753(23.6% fib).On the downside, immediate support is seen at 1.3654 (50% fib), a break below could take the pair towards 1.3604(61.8% fib).
USD/JPY: The U.S. dollar steadied against yen on Friday as greenback was supported by strong U.S. economic data that has prompted markets to dial back expectations for interest rate cuts. Data on Friday showed new orders for key U.S.-manufactured capital goods rebounded more than expected in April and shipments of these goods also increased, suggesting a pickup in business spending on equipment early in the second quarter.This follows Thursday's data that showed U.S. business activity in May accelerated to the highest level in just over two years and manufacturers reported surging input prices. Minutes from the Federal Reserve's last meeting published this week showed a lively debate among policymakers as to whether current rates were sufficiently restrictive to cool inflation. The dollar is up almost 1% this week on the Japanese yen to 156.95 yen. Strong resistance can be seen at 157.08(23.6%fib), an upside break can trigger rise towards 158.06(Higher BB).On the downside, immediate support is seen at 156.04(38.2% fib), a break below could take the pair towards 154.66(50% fib).
Equities Recap
European stocks ended lower on Friday and down for the week, as signs of persistent U.S. price pressures and a recovering euro zone economy cast doubt over prospects for several interest rate cuts from major central banks this year.
UK's benchmark FTSE 100 closed down by 0.26 percent, Germany's Dax ended up by 0.02 percent, France’s CAC finished the day down by 0.09 percent.
U.S. stocks rallied and crude oil prices rebounded after upbeat economic data on Friday as investors positioned themselves ahead of the long U.S. Memorial Day weekend and the unofficial start to summer.
Dow Jones closed up by 0.01% percent, S&P 500 closed up by 0.70% percent, Nasdaq settled up by 1.10% percent.
Commodities Recap
Gold prices rose on Friday as the dollar slipped, but were headed for their worst week in five and a half months as hopes of interest rate cuts by the U.S. central bank tamed.
Spot gold rose 0.2% to $2,332.77 per ounce as of 1:54 p.m. ET (1754 GMT) as the U.S. dollar index slipped 0.4%, making gold relatively less expensive for other currency holders.U.S. gold futures settled 0.1% lower to $2,334.50.
Oil prices rose about 1% on Friday, but fell for the week on worries that strong U.S. economic data would keep interest rates elevated for a longer period, curbing fuel demand.
The Brent crude July contract rose 76 cents to $82.12 a barrel. The more-active August contract closed up 73 cents at $81.84.
U.S. West Texas Intermediate (WTI) crude futures settled 85 cents, or 1.1%, higher to $77.72.
