Market Roundup
• US Aug Core Durable Goods Orders (MoM) 0.5%, 0.2% forecast, -0.5% previous
• US Aug Core PCE Price Index (YoY) 1.8%, 1.8% forecast, 1.7% previous
• US Aug Core PCE Price Index (MoM) 0.1%, 0.2% forecast, 0.2% previous
• US Aug Durable Goods Orders (MoM) 0.2%,-1.1% forecast, 2.0% previous
• US Aug Durables Excluding Defense (MoM) -0.6%, 0.1% forecast, 1.3% previous
• US Aug Goods Orders Non Defense Ex Air (MoM) -0.2%,0.1% forecast, 0.2% previous
• US Aug PCE price index (MoM) 0.0%, 0.2% previous
• US Aug PCE Price index (YoY) 1.4, 1.4 previous
• US Aug Personal Income (MoM) 0.4%,0.4% forecast, 0.1% previous
• US Aug Personal Spending (MoM) 0.1%,0.3% forecast, 0.5% previous
• US Sep Michigan 5-Year Inflation Expectations 2.40% , 2.60% previous
• US Sep Michigan Consumer Expectations 83.4 , 79.9 previous
• US Sep Michigan Consumer Sentiment 93.2, 92.0 forecast, 89.8 previous
• Canada Jul Budget Balance (YoY) -1.56B, -0.46B previous
• Canada Jul Budget Balance -1.47B, 0.96B previous
Looking Ahead - Economic Data (GMT)
No economic data ahead
Looking Ahead - Events, Other Releases (GMT)
No significant events
Currency Summaries
EUR/USD: The euro fell to more than two-year lows against the U.S. dollar on Friday, as a weak growth outlook weighed on the single currency, though it rebounded after finding support level. Dismal business activity data from the euro area, especially powerhouse economy Germany, has pushed European bond yields lower across the board this week, with further pressure coming from concern over economic weakness in Britain. The euro was up 0.21 percent at $1.0942. An index that tracks the dollar versus a basket of six major currencies was down 0.10 at 99.10. Immediate resistance can be seen at 1.0963 (5 DMA), an upside break can trigger rise towards 1.1010 (21 DMA).On the downside, immediate support is seen at 1.0900 (Psychological level), a break below could take the pair towards 1.0820 (23.6 fib level).
GBP/USD: Britain's pound declined against the dollar on Friday, as dovish comments from Bank of England policymaker knocked sterling lower. BoE policymaker Michael Saunders said BoE may cut interest rates.On Friday, sterling weakened as much as 0.4% to $1.2270 after Saunders gave the first clear signal that the central bank is considering a rate cut.It later rebounded to $1.2294, still down 0.1% on the day. Immediate resistance can be seen at 1.2345 (21 DMA), an upside break can trigger rise towards 1.2400 (Psychological level).On the downside, immediate support is seen at 1.2272 (Daily low), a break below could take the pair towards 1.2200 (Psychological level).
USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Friday, as the government of Alberta announced plans to ease oil curtailments, but the currency stuck to a narrow trading range and was on track to end the week near flat. Meanwhile, the price of oil fell and was heading for a weekly loss on a faster-than-expected recovery in Saudi output. The Canadian dollar was trading 0.1% higher at 1.3260 to the greenback, or 75.41 U.S. cents .Immediate resistance can be seen at 1.3225 (100 DMA), an upside break can trigger rise towards 1.3298 (200 DMA).On the downside, immediate support is seen at 1.3214 (Daily low), a break below could take the pair towards 1.3200 (Psychological level).
USD/JPY: The dollar was little against Japanese yen on Friday, as investors cautiously weighed fresh political turmoil in the United States and waited for the next turn in trade negotiations with China. China’s top diplomat said China was willing to buy more U.S. products. CNBC reported that trade war talks were on track and scheduled for Oct. 10-11 in Washington, citing people familiar with the arrangements.The greenback was marginally higher against the safe-haven yen, which traded at 107.88 per dollar. Strong resistance can be seen at 108.18 (20 DMA), an upside break can trigger rise towards 109.19 (200 DMA).On the downside, immediate support is seen at 107.11 (50 DMA), a break below could take the pair towards 107.00 (Psychological level).
Equities Recap
European shares rose on Friday, with London listed mining stocks driving gains due to a weaker pound, while hopes of a quick resolution to the U.S.-China trade war offset worries about slowing economic growth.
UK's benchmark FTSE 100 closed up 1.02 percent, Germany's Dax ended up by 0.75 percent, France’s CAC finished the day up by 0.36 percent.
U.S. stocks fell on Friday after news that the Trump administration was considering delisting Chinese companies from U.S. stock exchanges and limit U.S. investments into China.
Dow Jones closed down by -0.34% percent,S&P 500 ended down by -0.67% percent, Nasdaq finished the day down by -1.25%percent.
Treasuries Recap
U.S. Treasury prices gave back most of their early losses on Friday after U.S. data was weaker than expected and as month- and quarter-end rebalancing increased demand for safe-haven U.S. debt.
Benchmark 10-year notes were last down 3/32 in price to yield 1.694%, after earlier rising to 1.725%
Commodities Recap
Oil prices fell on Friday and were heading for a weekly loss on a faster than expected recovery in Saudi output while slowing Chinese economic growth dampens the demand outlook.
Brent crude fell 93 cents to $61.81 a barrel by 1102 GMT while U.S. crude sliped by 65 cents to $55.76. Both were down almost 4% over the week, representing WTI’s biggest weekly loss in 10 weeks and Brent’s biggest in seven.
Gold pared some losses on Friday, after falling more than 1%, as investors opted for the safety of the metal following reports the United States is considering delisting Chinese companies from U.S. stock exchanges.
Spot gold was down 0.5% at $1,498.07 an ounce as of 02:33 p.m. EDT (1833 GMT) after touching its lowest since Sept. 18 at $1,486.60 earlier in the session. The metal was still down about 1.2% for the week.
