Market Roundup
•US Mar Import Price Index (MoM) 0.4%, 0.3% forecast,0.3% previous
•US Mar Export Price Index (MoM) 0.3%,0.3% forecast,0.8% previous
•US Mar Export Price Index (YoY) 1.4% , -1.2% forecast,-1.8% previous
•US Mar Import Price Index (YoY) 0.4%, 0.3% forecast,-0.8% previous
•US Apr Michigan 5-Year Inflation Expectations 3.0%, 2.8% forecast,2.8% previous
•US Apr Michigan 1-Year Inflation Expectations 3.1%, 2.9% forecast,2.9% previous
•US Apr Michigan Consumer Sentiment 77.9,79.0 forecast, 79.4 previous
•US Apr Michigan Consumer Expectations 77.0,77.6 forecast,77.4 previous
•US Apr Michigan Current Conditions 79.3, 82.2 forecast, 82.5 previous
•US Apr U.S. Baker Hughes Oil Rig Count 506 ,508 previous
•U.S. Baker Hughes Total Rig Count 617 ,620 previous
Looking Ahead Economic Data(GMT)
• No data ahead
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro dropped to its lowest level in five months on Friday after the European Central Bank signalled it could soon cut rates even with a hot U.S. economy likely forcing the Federal Reserve to hold fire until later in the year . The ECB signalled it was still likely to start cutting rates in the summer, given that inflation has fallen more sharply in the single-currency bloc. The ECB and the Bank of England are predicted to begin reversing their own historically aggressive monetary tightening efforts sooner, in a trend that has weighed on the euro and sterling this week. The euro dropped to $1.0644 and was last down 0.67%, just above that level. It was on track to have fallen 1.5% since Monday, its biggest weekly drop since September 2022.Immediate resistance can be seen at 1.0797(9EMA), an upside break can trigger rise towards 1.0821(23.6%fib).On the downside, immediate support is seen at 1.0617 (23.6%fib), a break below could take the pair towards 1.0584 (Oct 24th 2023 low).
GBP/USD: Sterling fell to a five-month low on Friday even as data showed the British economy was on course to exit its shallow recession, with all major currencies coming under pressure from a dominant dollar.The pound was down 0.48% at $1.249, the lowest since mid-November. It was heading for a weekly loss of 1.1%, after hot U.S. inflation data this week slashed Federal Reserve easing expectations, boosting U.S. bond yields and the dollar. Britain's economic output grew by 0.1% in monthly terms in February, in line with forecasts, while January's reading was revised higher, pointing to an exit from recession in early 2024. Money markets are currently expecting about 52 basis points of interest rate cuts by the BoE this year and they see a 39% chance of the first cut arriving in June. Immediate resistance can be seen at 1.2484(38.2%fib), an upside break can trigger rise towards 1.2526(50%fib).On the downside, immediate support is seen at 1.2432(23.6%fib), a break below could take the pair towards 1.2400(Psychological level).
USD/CAD: The Canadian dollar weakened to a near five-month low against its broadly stronger U.S. counterpart on Friday as investors seized upon recent economic data to bet the Bank of Canada would begin cutting interest rates before the Federal Reserve. Data last Friday showed that Canada's economy surprisingly shed jobs in March and U.S. jobs growth beat expectations.Since then BoC Governor Tiff Macklem has said a rate cut in June was possible, and U.S. data has showed consumer prices rising more than expected last month. Canadian home sales rose 0.5% in March from February, and were up 1.7% on an annual basis, data from the Canadian Real Estate Association showed. Immediate resistance can be seen at 1.3794 (23.6%fib), an upside break can trigger rise towards 1.3864 (Nov 14th high).On the downside, immediate support is seen at 1.3699 (38.2%fib), a break below could take the pair towards 1.3678 (5 EMA).
USD/JPY: The dollar was little changed against yen on Friday as threat of currency intervention by Japanese authorities appeared to keep the yen steadier than other currencies. Japanese Finance Minister Shunichi Suzuki said authorities were analysing not just recent yen declines but factors that are driving the moves, and repeated that Tokyo stood ready to respond to any excessive currency swings.Suzuki said finance leaders from the Group of 20 major economies, who will meet in Washington D.C. next week on the sidelines of the spring International Monetary Fund (IMF) gatherings, may discuss currency moves as part of topics for debate. After hitting a fresh 34-year high of 153.32 yen overnight, the dollar stood at 152.19 yen on Friday. The Japanese currency has tumbled almost 8% against the dollar since the beginning of the year Strong resistance can be seen at 153.54(23.6%fib), an upside break can trigger rise towards 154.00(Psychological level).On the downside, immediate support is seen at 151.62 (5EMA), a break below could take the pair towards 152.43(38.2%fib).
Equities Recap
European markets edged up on Friday as investors digested U.K. economic data and pondered the uncertain U.S. inflation outlook.
UK's benchmark FTSE 100 closed up by 0.91 percent, Germany's Dax ended down by 0.28 percent, France’s CAC finished the day down by 0.16 percent.
Wall Street's main indexes all slumped well over 1% with the S&P 500 opens new tab posting its biggest one-day drop since Jan. 31, as first-quarter earnings season kicked off on a dour note with reports from major banks.
Dow Jones closed down by 1.24% percent, S&P 500 closed down by 1 .46% percent, Nasdaq settled down by 1.62% percent.
Commodities Recap
Gold prices rose above $2,400 per ounce to an all-time high on Friday, heading for their fourth week of gains, as growing tensions in the Middle East prompted investors to seek refuge in the safe-haven assets.
Spot gold eased 0.8% to $2,353.35 per ounce as of 1:40 p.m. ET (1740 GMT), taking a breather after hitting a record high of $2,419.79. Prices were up around 1% for the week.U.S. gold futures settled 0.1% higher at $2,374.1.
Oil rose around 1% on Friday on geopolitical tensions in the Middle East but posted a weekly loss on a bearish world oil demand growth forecast from the International Energy Agency (IEA) and worries about slower U.S. interest rate cuts.
Brent crude futures settled up 71 cents at $90.45 a barrel, while U.S. West Texas Intermediate crude futures rose 64 cents to $85.66.
