Market Roundup
•Canada Oct New Housing Price Index (MoM) 0.9% , 0.5% forecast, 0.4% previous
•Canada Sep Retail Sales (MoM) -0.6%,-1.7% forecast, 2.1% previous
•Canada Sep Core Retail Sales (MoM) -0.2%,-1.0% forecast, 2.8% previous
• U.S. Baker Hughes Total Rig Count 563, 556 previous
•U.S. Baker Hughes Oil Rig Count 461, 454 previous
Looking Ahead – Economic Data (GMT)
•No data ahead
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro declined against dollar on Friday as concerns over the economic damage from fresh COVID-19 lockdowns in Eurozone region weighed on euro. Austria will become the first country in western Europe to reimpose a full COVID-19 lockdown this autumn to tackle a new wave of infections. Germany’s Health Minister Jens Spahn said the coronavirus situation in the country was so grave that a lockdown, including for people who have been vaccinated, cannot be ruled out.The euro has been one of the biggest losers versus the greenback, set to fall around 1% this week. The euro was last down 0.8% on the day at $1.1297. Immediate resistance can be seen at 1.1327(38.2%fib), an upside break can trigger rise towards 1.1382(50%fib).On the downside, immediate support is seen at 1.1248 (23.6 % fib), a break below could take the pair towards 1.1200(Psychological level).
GBP/USD: The pound declined against the dollar on Friday as fears of a trade disruptions with the European Union hit pound. Britain left the EU last year but has put off implementing some of the border checks between its province of Northern Ireland and EU member Ireland that the bloc says are required under their divorce deal.On Friday, the government's spending watchdog said Britain had been unprepared for a crisis like COVID-19 and was distracted by Brexit. Sterling edged 0.38% lower against greenback at $1.3441. Immediate resistance can be seen at 1.3508 (50% fib), an upside break can trigger rise towards 1.3567 (61.8%fib).On the downside, immediate support is seen at 1.3438 (38.2%fib), a break below could take the pair towards 1.3348(23.6%fib).
USD/CAD The Canadian dollar fell versus its U.S. counterpart on Friday, touching a seven-week low as concerns over surging COVID-19 infections in Europe battered riskier currencies, but the loonie reversed some losses after better-than-expected retail sales numbers. The price of oil, one of Canada's main exports, fell sharply on Friday toward $78 a barrel as the fresh surge in COVID-19 cases in Europe threatened to slow the economic recovery. The Canadian dollar dropped 0.37% to 1.2648 against the greenback, or 79.06 U.S. cents, and earlier traded as low as 1.2662, its weakest since Oct. 1. Immediate resistance can be seen at 1.2642(Higher BB), an upside break can trigger rise towards 1.2666(23.6%fib).On the downside, immediate support is seen at 1.2612 (38.2%fib), a break below could take the pair towards 1.2569 (50%fib).
USD/JPY: The dollar declined against the Japanese yen on Friday as investors sought safe havens after Austria said it would be the first country in Western Europe to reimpose a full lockdown amid surging COVID-19 infections and Germany said it could follow suit. On top of a lockdown, Austria said it will require all its citizens to be vaccinated against COVID-19 from Feb. 1, while Germany's health minister cautioned lockdown restrictions could return there. The Japanese yen strengthened following Austria's lockdown announcement, and was up 0.22% versus the dollar at 114.00 yen. Strong resistance can be seen at 114.30 (38.2% fib), an upside break can trigger rise towards 114.85 (23.6%fib).On the downside, immediate support is seen at 113.85(50%fib), a break below could take the pair towards 113.37 (61.8% fib).
Equities Recap
European stocks ended in the red on Friday, clocking their first weekly decline in seven weeks on concerns over the economic damage from fresh COVID-19 lockdowns in the region that hammered cyclical sectors such as banks and automakers.
UK's benchmark FTSE 100 closed down by 0.45 percent, Germany's Dax ended down by 0.38 percent, France’s CAC finished the day down by 0.42 percent.
The Nasdaq Composite Index (.IXIC) closed above 16,000 points for the first time on Friday, in its second-straight record finish powered by technology stocks, while pandemic jitters sent the Dow to its fourth losing session in the last five.
Dow Jones closed down by 0.75 percent, S&P 500 was last up by 0.14 percent, Nasdaq was up by 0.40% percent.
Treasuries Recap
Long-dated U.S. Treasury yields tumbled on Friday as concerns about new lockdowns related to the spread of COVID-19 in Europe increased demand for safe-haven bonds, though the move was likely exaggerated by low liquidity.
Benchmark 10-year notes last yielded 1.538%, down five basis points on the day, after dropping as low as 1.515%. the lowest since Nov. 10 the move was likely exaggerated by low liquidity.
Commodities Recap
Gold prices fell to a one-week low on Friday, weighed down by gains in the dollar after Federal Reserve Governor Christopher Waller called for early tapering of economic support to help chart a tighter monetary policy.
Spot gold fell 0.6% to $1,848.05 per ounce by 14:42 ET (1942 GMT). U.S. gold futures settled 0.5% lower at $1,851.60.
Oil prices fell about 3% to below $80 a barrel on Friday as surging COVID-19 cases in Europe threatened to slow the economic recovery while investors also weighed a potential release of crude reserves by major economies to cool prices.
Brent futures for January fell $2.35, or 2.9%, to settle at $78.89 a barrel.U.S. West Texas Intermediate (WTI) crude for December fell $2.91, or 3.6%, to $76.10.
