Market Roundup
•Canada Housing Starts 282.1K 270.0k forecast, 275.9K previous
•US June Retail Sales (YoY) 17.98% ,28.15% previous
• Canada May Wholesale Sales (MoM) 0.5% ,1.1% forecast, 0.4% previous
• Canada Jun Core Retail Sales (MoM) 1.3%, 0.4% forecast, -0.7% previous
•US Jun Retail Sales (MoM) 0.6% ,-0.4% forecast, -1.3% previous
• Canada May Foreign Securities Purchases 20.79B, 9.95B previous
•US Jun Retail Sales Ex Gas/Autos (MoM) 1.1% ,-0.8% previous
•US Jun Retail Control (MoM) 0.4% forecast, -0.7% previous
• Canada May Foreign Securities Purchases by Canadians 18.63B previous
• US May Business Inventories (MoM) 0.5% ,0.5% forecast, -0.2% previous
• US May Retail Inventories Ex Auto 0.9% ,0.9% previous
• US Jul Michigan Current Conditions 90.2 forecast, 88.6 previous
• US Jul Michigan Consumer Expectations 84.5, 85.0 forecast, 83.5 previous
• US Jul Michigan 5-Year Inflation Expectations 2.90% ,2.80% previous
• US Michigan Jul Consumer Sentiment 80.8, 86.5 forecast, 85.5 previous
Looking Ahead Economic Data (GMT)
•No data ahead
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro declined on Friday as U.S. dollar rose after upbeat retail sales data boosted expectations that economic growth accelerated in the second quarter. U.S. retail sales unexpectedly increased in June as demand for goods remained strong even as spending was shifting back to services. The dollar index , which measures the greenback against a basket of six currencies, was 0.11% higher at 92.675. The index is up 0.6% for the week. Immediate resistance can be seen at 1.1820 (38.2%fib an upside break can trigger rise towards 1.1864 (20%fib).On the downside, immediate support is seen at 1.1768 (Lower BB), a break below could take the pair towards 1.1750(23.6%fib)
GBP/USD: Sterling slipped on Friday against the dollar, and headed for its worst week in a month, as investors sought safety in the greenback amid concerns over rising COVID-19 cases globally. The pound fell 0.3% against the dollar to $1.3761 , its lowest in a week.Despite briefly breaking into positive territory it was poised for a weekly loss of 0.8%, which if sustained would be its worst since mid-June. Immediate resistance can be seen at 1.3820 (5DMA), an upside break can trigger rise towards 1.3840(38.2%fib).On the downside, immediate support is seen at 1.3750 (23.6%fib), a break below could take the pair towards 1.3701 (Lower BB).
USD/CAD: The Canadian weakened against its U.S. counterpart on Friday as stronger dollar offset better than expected Canadian wholesale trade data. Data showed Canadian wholesale trade increased in May, with the gain backed by sales in the food sector. Wholesale sales increased 0.5% on a seasonally adjusted basis in May to 72.22 billion C$ dollars , Statistics Canada said Friday. The loonie was trading 0.13% lower at 1.2607 to the greenback. The currency traded in a range of 1.2560 to 1.2617 .Immediate resistance can be seen at 1.2617(23.6%fib), an upside break can trigger rise towards 1.2648 (Higher BB).On the downside, immediate support is seen at 1.2540 (23.6% fib), a break below could take the pair towards 1.2531(5DMA).
USD/JPY: The dollar strengthened against the Japanese yen on Friday after upbeat U.S. retail sales data reaffirmed an economy in strong recovery mode. The Commerce Department said retail sales rose 0.6% in June, contrary to an expected decline, adding weight to those who say inflation will run faster than the Federal Reserve forecasts and force interest rates to rise sooner than it projects. At 21:20 GMT, the dollar against the Japanese yen rose 0.32% to 110.02.Strong resistance can be seen at 110.18 (50%fib), an upside break can trigger rise towards 110.35 (Daily high).On the downside, immediate support is seen at 109.72 (23.6%fib), a break below could take the pair towards 109.41 (Lower BB).
Equities Recap
European stocks rose on Friday after travel stocks rebounded from sharp losses posted earlier this week, while a batch of upbeat earnings reports overshadowed concerns about rising cases of Delta variant in the continent.
The UK's benchmark FTSE 100 closed down by 0.06 percent, Germany's Dax ended down by 0.57 percent, and France’s CAC finished the day down by 0.51 percent.
Wall Street fell on Friday, weighed down by declines in Amazon and other heavyweights technology stocks, while investors worried about a rise in coronavirus cases tied to the highly contagious Delta variant.
Dow Jones closed down at 0.86 percent, S&P 500 ended down 0.75percent, Nasdaq finished the day down by 0.80 percent.
Treasury Recap
U.S. Treasury yields pared most of Friday's gains as doubts about the economic recovery's strength and dovish Federal Reserve policy were seen as likely to cap yields in the near-term, even after U.S. retail sales unexpectedly rose in June.
Benchmark 10-year notes gained half a basis point on the day to 1.302%. The yield curve between two-year and 10-year notes was little changed on the day at 107 basis points.
Commodities Recap
Gold slipped on Friday as a stronger dollar dulled its appeal and pushed the metal further from one-month highs hit in the previous session.
Spot gold dropped 0.8% to $1,814.11 per ounce by 1:43 pm EDT, though it was up 0.3% so far this week. U.S. gold futures settled 0.8% lower at $1,815.
Oil prices were little changed on Friday and ended the week lower, sapped in volatile trade by expectations of growing supplies just when a rise in coronavirus cases could lead to lockdown restrictions and depressed demand.
Brent futures rose 12 cents, or 0.2%, to settle at $73.59 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 16 cents, or 0.2%, to settle at $71.81.
