Market Roundup
• Canada Dec Wholesale Sales (MoM) -1.3%, -1.5% forecast, 0.7% previous
• UK NIESR Monthly GDP Tracker-2.5%, 0.9% previous
• US Feb Michigan Consumer Expectations 69.8, 75.7 forecast, 74.0 previous
• US Feb Michigan 5-Year Inflation Expectations 2.70%, 2.70% previous
• US Feb Michigan Consumer Sentiment 3.3%,80.8 forecast, 79.0 previous
• US US Federal Budget -430.0B previous
Equities Recap
• 23:50 Japan Foreign Bond 1,027.5B, 729.6B previous
• 23:50 Japan Foreign Investments in Japanese Stocks
Looking Ahead - Economic events and other releases (GMT)
• No significant
Currency Summaries
EUR/USD: The euro edged lower against dollar on Friday as investors awaited progress towards more U.S. fiscal stimulus. Investors weighed some tepid economic data against increasing COVID-19 vaccinations and the prospect that more government spending and continued cheap money from central banks will drive higher growth and, eventually, inflation. The euro was last trading down 0.13% at $1.2112 . Immediate resistance can be seen at 1.2133 (50%fib), an upside break can trigger rise towards 1.2209 (61.8%fib).On the downside, immediate support is seen at 1.2094 (5EMA), a break below could take the pair towards 1.2065 (38.2%fib).
GBP/USD: The British pound slipped below $1.38 against the dollar after data showed Britain’s economy suffered a record slump in 2020, but grew in the final quarter. Official figures showed gross domestic product (GDP) grew 1.0% from October through December, the top of a range of economists’ forecasts . Britain’s economy grew 1.2% in December alone, after a 2.3% fall in output in November when there was a partial lockdown, pointing to greater resilience to COVID restrictions than at the start of the pandemic. Immediate resistance can be seen at 1.3850 (23.6%fib), an upside break can trigger rise towards 1.3900(Psychological level).On the downside, immediate support is seen at 1.3749 (5 DMA), a break below could take the pair towards 1.3695 (38.2%fib).
USD/CAD: The Canadian dollar steadied against its U.S. counterpart on Friday, with the currency holding on to this week's gains as oil and Wall Street turned higher, having clawed back earlier declines. Canadian wholesale trade fell by 1.3% in December from November on lower sales of motor vehicles and motor vehicles parts and accessories, Statistics Canada said. Analysts had forecast a 1.5% decrease. The loonie was trading nearly unchanged at 1.2697 to the greenback , having traded in a range of 1.2676 to 1.2763. For the week, it rose 0.4%. Immediate resistance can be seen at 1.2743 (9 DMA), an upside break can trigger rise towards 1.2786(38.2%fib).On the downside, immediate support is seen at 1.2632 (23.6%fib), a break below could take the pair towards 1.2600(Psychological level).
USD/JPY: The dollar strengthened against the Japanese yen on Friday as mixed U.S. economic data caused some investors to show restraint. U.S. weekly unemployment claims fell less than expected and core consumer prices rose at a slower pace, which caused some traders to temper the optimism about the economic outlook. The dollar index edged up by 0.05% on Friday but was still on course for a 0.6% weekly decline. Strong resistance can be seen at 105.21 (Daily high), an upside break can trigger rise towards 105.45(23.6%fib).On the downside, immediate support is seen at 104.43 (50%fib), a break below could take the pair towards 103.08 (61.8%fib).
Equities Recap
European shares reversed earlier losses to close higher on Friday, led by ASML and L’Oreal, although a dip in Volkswagen weighed on Germany’s main index..
UK's benchmark FTSE 100 closed up by 0.94 percent, Germany's Dax ended up by 0.06 percent, France’s CAC finished the day up 0.60 percent.
The S&P 500 and Nasdaq traded sideways on Friday in a tight range, with investors buying energy, financial and materials shares and selling big tech stocks as they wait for progress on new fiscal aid from Washington to spur the market to new highs.
Dow Jones closed up by 0.09 percent, S&P 500 closed up by 0.47 percent, Nasdaq settled up by 50 % percent.
Commodities Recap
Gold slipped as the dollar rebounded on Friday while platinum took a breather after expectations of a rebound in industrial demand drove a rally to a more than six-year peak and put it on course for its best week in two months.
Spot gold lost 0.5% to $1,816.40 an ounce by 1221 GMT and U.S. gold futures were down 0.6% at $1,816.30.
Oil prices climbed more than 2% on Friday, hitting the highest levels in more than a year on hopes a U.S. stimulus will boost the economy and fuel demand, as supplies tighten due largely to output cuts by top producing countries.
Brent crude settled up $1.29, or 2.1%, at $62.43 a barrel by 1:32 p.m. ET (1832 GMT) after rising to a session high of $62.83, the highest since Jan. 22, 2020. U.S. oil ended the session up $1.23, or 2.1%, at $59.47 after rising to a session high of $59.82, the highest since Jan. 9, 2020.
