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  |   Market Roundups


America’s Roundup: Dollar mostly flat as market mulls inflation outlook ,Wall Street end mixed, Gold gains, Oil gains 1% on hopes of firmer demand

Market Roundup

•Canada  Mar  Foreign Securities Purchases by Canadians 35.61B, 24.19B previous

• Canada  Mar  Foreign Securities Purchases 14.37B, 3.51B forecast,-8.78B previous

•US Apr Leading Index (MoM) -0.6%, -0.3% forecast, -0.3% previous

• U.S. Baker Hughes Oil Rig Count 497, 496 previous

•   U.S. Baker Hughes Total Rig Count 604, 603 previous

Looking Ahead Economic Data(GMT)

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Currency Summaries

EUR/USD: The euro rose against dollar on Friday as investors looked forward   for some clarity on the path for interest rate cuts by the European Central Bank beyond June. The policy outlook for major central banks has turned a little complicated. Multiple ECB policymakers have indicated a June cut, but sounded cautious on the need for future cuts, while recent encouraging U.S. economic data haven't seen Federal Reserve policymakers openly shift views about rate cut timing. Euro zone policymakers have increased confidence that inflation will ease back to target next year due to easing price pressures, ECB Vice-President Luis de Guindos said on Friday. The euro rose 0.06% against the dollar to $1.0872. Immediate resistance can be seen at 1.0901 (23.6%fib), an upside break can trigger rise towards 1.0940(21st Mar).On the downside, immediate support is seen at 1.0835 (38.2% fib), a break below could take the pair towards  1.0768(50% fib).

GBP/USD: Sterling was on track for a weekly gain versus the dollar on Friday, as currency traders look ahead to key data releases next week that could point to how quickly the Bank of England may cut interest rates.Data this week showed that British wages grew by more than expected in the first three months of the year, but other figures suggested the labour market is losing some of its inflationary heat.Closely-watched consumer price inflation data is due out on Wednesday, while  flash' PMI data on British business activity will follow the next day. On Tuesday, Bank of England chief economist Huw Pill said the central bank might be able to consider cutting interest rates over the summer.Traders are currently pricing in a 52.6% chance of a 25 basis point cut in June. Immediate resistance can be seen at 1.2701(23.6%fib), an upside break can trigger rise towards 1.2716(Higher BB).On the downside, immediate support is seen at 1.2626(38.2% fib), a break below could take the pair towards 1.2558 ( 50% fib).

 USD/CAD: The Canadian dollar strengthened against U.S. counterpart on Friday as surging commodity prices boosted loonie. Next week, investors will gauge Canada's April inflation data on Tuesday for fresh insights into the Bank of Canada's rate-cut timeline. Investors anticipate the BoC to begin rate cuts as early as June or July, compared to the U.S. Federal Reserve's first cut expected in September. Oil prices rose, with global benchmark Brent crude recording its first weekly gain in three weeks.U.S. crude gained 83 cents to settle at $80.06 a barrel and Brent rose 71 cents to settle at $83.98 per barrel. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, fell 0.02% to 104.48. The Canadian dollar  was trading 1.1% higher at 1.3608 to the greenback .Immediate resistance can be seen at 1.3646 (38.2%fib), an upside break can trigger rise towards 1.3717 (23.6%fib).On the downside, immediate support is seen at 1.3591(50%fib), a break below could take the pair towards 1.3535(61.8%fib).

USD/JPY: The U.S. dollar strengthen against yen on Friday as market speculation continues to swirl about the timing of Federal Reserve interest rate cuts amid signs of cooling yet persistent inflation and a softening U.S. economy. U.S. inflation accelerated in the first quarter amid strong domestic demand after moderating for much of last year. Last month's slowdown was a relief after data on Tuesday showed a jump in producer prices in April.Policymakers said on Thursday that still-high inflation warrants keeping rates at current levels, and that reaching the Fed's 2% inflation target will take longer than previously though. The dollar gained 0.17% on the Japanese yen at 155.64.Strong resistance can be seen at 156.32(23.6%fib), an upside break can trigger rise towards 156.79(May 14th high).On the downside, immediate support is seen at 154.54(38.2% fib), a break below could take the pair towards 153.00(50% fib).

Equities Recap

European shares closed lower on Friday, as investors turned cautious following remarks from a policymaker on the outlook for monetary policy, while Richemont logged its best day in over three months after announcing a management rejig.

UK's benchmark FTSE 100 closed down  by  0.22 percent, Germany's Dax ended down by 0.17 percent, France’s CAC finished the day down  by 0.26 percent.               

The Dow Jones industrial average closed above the 40,000 mark for the first time on Friday, with other major indexes also scoring weekly gains, as data supported expectations for interest rate cuts by the Federal Reserve this year.

Dow Jones closed up   by 0.34 %percent, S&P 500 closed up up by 0.12% percent, Nasdaq settled down  by  0.07 % percent.

Commodities Recap

Oil prices settled about 1% higher on Friday, with global benchmark Brent crude recording its first weekly gain in three weeks, after economic indicators from the world's top two oil consumers - China and the U.S. - bolstered hopes for higher demand.

Brent settled 71 cents higher, or 0.9%, at $83.98 a barrel. U.S. West Texas Intermediate crude (WTI) gained 83 cents, or 1.1%, to $80.06.For the week, Brent gained about 1%, while WTI rose 2%.

Gold prices, aided by China's stimulus measures, looked poised to clock their second consecutive weekly gain on Friday on renewed hopes for U.S. interest rate cuts, with silver breaking the $30 barrier to hit an 11-year high.

Spot gold rose 1.5% to $2,412.83 per ounce by 1745 GMT, closing in towards an all-time high of $2,431.29 hit on April 12.

U.S. gold futures settled 1.3% higher at $2417.40 per ounce.

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