Market Roundup
•US Wholesale Inventories (MoM) 0.6% ,1.1% previous
•US Jul Goods Trade Balance-86.38B, -92.05B previous
•US Jul Retail Inventories Ex Auto 0.5%,0.5% previous
•US Jul PCE Price index (YoY) 4.2,4.0 previous
•US Jul Core PCE Price Index (YoY) 3.6%,3.6% forecast, 3.5% previous
•US Jul Core PCE Price Index (MoM) 0.3%,0.3% forecast, 0.4% previous
•US Jul Personal Spending (MoM) 1.1%,0.3% forecast, 1.0% previous
•US Jul Real Personal Consumption (MoM-0.1%,0.5% previous
•US Michigan Aug 5-Year Inflation Expectations 2.90%, 3.00% forecast, 2.80% previous
•US Michigan Aug Michigan Consumer Expectations 65.1,65.2 forecast, 79.0 previous
•US Aug Michigan Inflation Expectations 4.6%,4.6% forecast, 4.7% previous
•US Aug Michigan Current Conditions 78.5, 77.9 forecast, 84.5 previous
•Canada Jun Budget Balance -12.71B,-13.98B previous
•US Michigan Aug Consumer Sentiment 70.7 forecast, 70.2 previous
Looking Ahead –Economic Data (GMT)
•No data ahead
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency summaries
EUR/USD: The euro strenthed against dollar on Friday after Federal Reserve Chair Jerome Powell indicated the U.S. central bank could begin scaling back its bond buying program by year-end but did not give a firm timeline.Powell's much-anticipated speech was noncommittal on the precise timing of the Fed's bond tapering, unlike earlier remarks by several regional Fed presidents who wanted tapering to start soon. The dollar index , which measures the greenback's performance against a basket of six major currencies, fell 0.397% to 92.684. The euro was last up 0.11% at $1.0988 . Immediate resistance can be seen at 1.1802 (38.2%fib), an upside break can trigger rise towards 1.1844 (23.6%fib).On the downside, immediate support is seen at 1.1769( 50%fib), a break below could take the pair towards 1.1738 (61.8%fib).
GBP/USD: Britain's pound jumped half a percent to the dollar to more than a week's high on Friday and was set for a 1% weekly gain as the greenback fell after U.S. Federal Reserve chair Jerome Powell stopped short of signalling the timing for a policy shift.In prepared remarks for a speech to the Jackson Hole economic conference, Powell signalled the U.S. central bank will remain patient as it tries to nurse the economy back to full employment, repeating that he wants to avoid chasing transitory inflation. The lack of a concrete signal about potential tapering of the central bank's stimulus programme knocked the dollar lower, helping the pound gain some ground, rising 0.5% to $1.3781. That was its highest level since Aug. 18. Immediate resistance can be seen at 1.3753 (38.2%fib), an upside break can trigger rise towards 1.3821(50%fib).On the downside, immediate support is seen at 1.3666 (23.6%fib), a break below could take the pair towards 1.3621(Lower BB).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Friday as Canadaian dollar was helped by gains in oil and dovish statement from U.S. Federal Reserve Chairman Jerome Powell's remarks at the Jackson Hole Symposium. Crude prices were on track to post big gains for the week, on worries about supply disruptions amid a forecast of a possible hurricane to hit the Gulf of Mexico this weekend. Immediate resistance can be seen at 1.2683 (38.2%fib), an upside break can trigger rise towards 1.2780 (Higher BB).On the downside, immediate support is seen at 1.2567(50%fib), a break below could take the pair towards 1.2448 (61.8%fib).
USD/JPY: The dollar declined against the Japanese yen on Friday after Federal Reserve Chair Jerome Powell indicated in a highly anticipated speech that the U.S. central bank could start tapering its massive support to the economy could start by year's end, which was not as fast as many in the market had assumed.Powell said there had been clear progress toward maximum employment and he believed that if the U.S. economy improved as anticipated, it could be appropriate to start reducing the pace of asset purchases this year. Strong resistance can be seen at 109.68 (38.2%fib), an upside break can trigger rise towards 110.18 (23.6%fib).On the downside, immediate support is seen at 109.55(50%fib), a break below could take the pair towards 109.27 (61.8%fib).
Equities Recap
European stocks rose on Friday after Federal Reserve Chair Jerome Powell showed no signs the U.S. central bank will reduce a massive stimulus program, while real estate stocks were led higher by Norway’s Entra after a major peer took a stake in the firm.
UK's benchmark FTSE 100 closed up by 0.32 percent, Germany's Dax ended up by 0.37 percent, France’s CAC finished the day up by 0.24 percent.
Wall Street's main indexes extended gains on Friday as Federal Reserve Chair Jerome Powell signaled the U.S. central bank will remain patient as it tries to nurse the economy back to full employment.
Dow Jones closed up by 0.69% percent, S&P 500 closed up by 0.88% percent, Nasdaq settled up by 1.23% percent.
TreasuriesRecap
U.S. Treasury yields fell onFriday after Federal Reserve Chair Jerome Powell gave no new hints on when the U.S. central bank is likely to begin paring bond purchases, leading investors to assume a taper is unlikely until later in the year.
Benchmark 10-year notes fell to 1.310%, down from around 1.341% before Powell's comments were released. The yields briefly reached a two-week high of 1.375% on Thursday.
Commodities Recap
Oil prices rose 2% on Friday, posting their biggest weekly gains in over a year, as energy firms began shutting U.S. production in the Gulf of Mexico ahead of a major hurricane expected to hit early next week.
Brent futures rose $1.63, or 2.3%, to settle at $72.70 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.32, or 2.0%, to settle at $68.74.
Gold bounced over 1% on Friday after Federal Reserve Chair Jerome Powell stopped short of signalling when the U.S. central bank would start withdrawing its economic support and reiterated his view that current price spikes are transitory.
Spot gold rose 1.4% to $1,817.21 per ounce by 1:33 p.m. EDT (1733 GMT). U.S. gold futures settled up 0.9% at $1,819.50.
