Market Roundup
• US Core Durable Goods Orders (MoM) (Sep) 0.4%,-0.1% forecast,0.6% previous
• US Durable Goods Orders (MoM) (Sep) -0.8% , -1.1% forecast, -0.8% previous
• US Durables Excluding Defense (MoM) (Sep) -1.1% , -1.3% previous
• US Goods Orders Non Defense Ex Air (MoM) (Sep) 0.5% , 0.3% previous
•Canada Core Retail Sales (MoM) (Aug) -0.7% , 0.3% forecast, 0.3% previous
•Canada Manufacturing Sales (MoM) (Sep) -0.8%,-1.3% previous
•Canada New Housing Price Index (MoM) (Sep) 0.0% ,0.2% forecast, 0.0% previous
•Canada Retail Sales (MoM) (Aug) 0.4% ,0.5% forecast,0.9% previous
•US Michigan 1-Year Inflation Expectations (Oct) 2.7% ,2.9% forecast, 2.9% previous
•US Michigan 5-Year Inflation Expectations (Oct) 3.0%,3.0% forecast, 3.0% previous
•US Michigan Consumer Expectations (Oct) 74.1, 72.9 forecast, 72.9 previous
•US Michigan Consumer Sentiment (Oct) 70.5, 68.9 forecast, 68.9 previous
•US Michigan Current Conditions (Oct) 64.9 ,62.7 forecast, 62.7 previous
•US Atlanta Fed GDP Now (Q3) 3.3%, 3.4% forecast, 3.4% previous
Looking Ahead Economic Data(GMT)
•No Events Ahead
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro retreated on Friday amid broad dollar strength and after European Central Bank President Christine Lagarde said Euro zone inflation is well on track to hit the bank’s 2% target next year.Lagarde's comments followed reports that euro zone bank lending was continuing to rebound and German business morale rose more than expected in October.The European Central Bank will keep cutting interest rates and its deposit rate remains quite far away from a neutral setting, said French central bank chief Francois Villeroy de Galhau said.Additionally, German Finance Minister Christian Lindner told Reuters that a trade conflict between the United States and the European Union would not see any winner. Strong resistance can be seen at 1.0816(SMA5 ), an upside break can trigger rise towards 1.0847(38.2%fib).On the downside, immediate support is seen at 1.0785(23.6%fib), a break below could take the pair towards 1.0700(Psychological level).
GBP/USD: The pound eased on Friday as traders awaited details of the U.K. budget scheduled for Oct. 30. British finance minister Rachel Reeves will seek to shift the world's sixth-biggest economy, and Prime Minister Keir Starmer's government, onto a new course next week with big increases in public spending and tax.The Labour Party's first budget in 14 years will end months of speculation about how much Reeves and Starmer will borrow for infrastructure investment and how hard they will hit taxpayers. Reeves' budget on Wednesday is likely to include an array of revenue-raising changes, a prospect that has worried households and business already on edge about Labour's plan to give workers more protections in their jobs.Immediate resistance can be seen at 1.3054(38.2%fib), an upside break can trigger rise towards 1.3123(50%fib).On the downside, immediate support is seen at 1.2912(Oct 23rd low), a break below could take the pair towards 1.2901 (Lower BB).
USD/CAD: The Canadian dollar weakened to near 12-week low against its U.S. counterpart on Friday, pressured by the Bank of Canada's most recent interest rate cut and an uncertain outlook for the economy ahead of the Nov. 5 U.S. presidential election. On Wednesday, the BoC reduced its benchmark rate by half a percentage point to 3.75% to support the economy, the first cut of that size in 15 years outside of the pandemic era.Canada's new immigration reduction targets announced this week will likely have a bigger impact on the BoC's growth forecast than on the inflation trajectory, Governor Tiff Macklem said. Domestic data showed that retail sales rose by 0.4% in August from July, slightly less than expected, while a preliminary estimate showed sales up 0.4% in September.The loonie was last trading 0.2% lower at 1.3880 to the U.S. dollar. Immediate resistance can be seen at 1.3900(23.6 %fib), an upside break can trigger rise towards 1.3956(Higher BB).On the downside, immediate support is seen at 1.3823(38.2 %fib), a break below could take the pair towards 1.3757(50 %fib).
USD/JPY: The dollar held near three month high against the yen on Friday as investors awaited election in Japan over the weekend that is likely to complicate the Bank of Japan's (BOJ) policy normalisation plans. Japanese voters were set to head to the polls on Sunday for a general election with opinion surveys showing the ruling Liberal Democratic Party (LDP) could lose its dominance that has lasted for more than a decade, possibly complicating monetary policy plans for the Bank of Japan (BOJ).The BOJ is scheduled to meet next week and is expected to maintain ultra-low interest rates next week, and probably signal a less dovish policy outlook due to receding fears of U.S. recession - and the need to keep speculators from pushing down the yen too much. Immediate resistance can be seen at 153.12 (23.6 %fib), an upside break can trigger rise towards 153.00(Psychological level). On the downside, immediate support is seen at 152.23(Daily low), a break below could take the pair towards 150.88(38.2%fib)
Equities Recap
Europe's main stock index closed Friday's choppy session flat and notched weekly losses, as a handful of weak corporate earnings from auto-related companies such as Mercedes-Benz and Valeo and appliances-maker Electrolux dented investor sentiment.
UK's benchmark FTSE 100 closed down by 0.25 percent, Germany's Dax ended up by 0.11 percent, France’s CAC finished the day up by 0.08 percent.
The Nasdaq ended higher on Friday, driven by megacap shares, as investors awaited quarterly results from some of Wall Street's biggest companies next week.
Dow Jones closed down by 0.61% percent, S&P 500 closed down by 0.03% percent, Nasdaq settled up by 0.56% percent.
Commodities Recap
Gold prices edged up on Friday after recovering from a profit-taking bout as Middle East tensions and U.S. election jitters supported prices, while palladium prices extended gains to 10-month highs.
Spot gold was up 0.2% at $2,741.50 per ounce by 01:44 p.m. ET (1744 GMT). Prices hit a record $2,758.37 on Wednesday and logged a third straight weekly gain.U.S. gold futures settled 0.2% higher at $2,754.60.
Oil prices settled higher on Friday and gained 4% on the week, with investors taking stock of the ongoing conflict in the Middle East as well as the U.S. election next month.
Brent crude futures settled up $1.67, or 2.25%, at $76.05 a barrel. U.S. West Texas Intermediate crude settled up $1.59, or 2.27%, to $71.78.
Brent settled 4% up on the week, while WTI settled 3.7% higher on the week.
