Market Roundup
•German Oct PPI (MoM) 3.8%,1.9% forecast, 2.3% previous
•UK Oct Retail Sales (MoM) 0.8%,0.5% forecast, -0.2% previous
•UK Oct Public Sector Net Cash Requirement 61.452B,4.688B previous
•UK Oct Public Sector Net Borrowing 18.04B, 21.01B previous
•UK Oct Core Retail Sales (YoY) -1.9%, -3.1% forecast, -2.6% previous
•UK Oct Core Retail Sales (MoM) 1.6%,0.6% forecast, -0.6% previous
•UK Oct Retail Sales (YoY) -1.3%,-2.0% forecast, -1.3% previous
•EU Sep Current Account n.s.a 26.9B,17.6B previous
•EU Sep Current Account 18.7B,13.4B previous
• Italian Sep Industrial Sales (YoY) 15.20%,13.80% previous
•Italian Sep Industrial Sales (MoM) 0.10%, 0.80% previous
Looking Ahead - Events, Other Releases (GMT)
•13:30 Canada Oct New Housing Price Index (MoM) 0.5% forecast, 0.4% previous
•13:30 Canada Sep Retail Sales (MoM) -1.7% forecast, 2.1% previous
•13:30 Canada Sep Core Retail Sales (MoM) -1.0% forecast, 2.8% previous
•13:30 US Oct Building Permits (MoM) -7.8% previous
Looking Ahead - Events, Other Releases (GMT)
•13:45 US Fed Waller Speaks
•17:15 US FOMC Member Clarida Speaks
Fxbeat
EUR/USD: The euro declined against dollar on Friday as concerns over the economic damage from fresh COVID-19 lockdowns in Eurozone region weighed on euro. Austria will become the first country in western Europe to reimpose a full COVID-19 lockdown this autumn to tackle a new wave of infections.
Germany's Health Minister Jens Spahn said the coronavirus situation in the country was so grave that a lockdown, including for people who have been vaccinated, cannot be ruled out.The euro has been one of the biggest losers versus the greenback, set to fall around 1% this week. The euro was last down 0.5% on the day at $1.13195. Immediate resistance can be seen at 1.1375(38.2%fib), an upside break can trigger rise towards 1.1429 (50%fib).On the downside, immediate support is seen at 1.1300 (23.6 % fib), a break below could take the pair towards 1.1266(Lower BB).
GBP/USD: The pound declined against the dollar on Friday as worries have mounted that disagreements between Britain and the European Union could trigger trade disruptions hit pound. Britain left the EU last year but has put off implementing some of the border checks between its province of Northern Ireland and EU member Ireland that the bloc says are required under their divorce deal.On Friday, the government's spending watchdog said Britain had been unprepared for a crisis like COVID-19 and was distracted by Brexit. Sterling edged 0.5% lower against greenback aat $1.3436 . Immediate resistance can be seen at 1.3508 (50% fib), an upside break can trigger rise towards 1.3567 (61.8%fib).On the downside, immediate support is seen at 1.3438 (38.2%fib), a break below could take the pair towards 1.3348(23.6%fib).
USD/CHF: The dollar strengthened against the Swiss franc on Friday as a run of strong economic data boosted bets for earlier Federal Reserve interest-rate hikes. U.S. retail sales rose more than expected in October, a report showed Tuesday, building on momentum from last week when data showed consumer prices surging at the highest rate since 1990.St. Louis Fed president James Bullard said on Tuesday that the central bank should tack in a more hawkish direction over its next couple of meetings to prepare in case inflation does not begin to ease. Immediate resistance can be seen at 0.9281(38.2 % fib), an upside break can trigger rise towards 0.9330 (23.6%fib).On the downside, immediate support is seen at 0.9244 (50%fib), a break below could take the pair towards 0.9210(61.8%fib ).
USD/JPY: The dollar declined against the Japanese yen on Friday after a fresh stimulus package was unveiled by Japan's government. Japan unveiled a record $490 billion spending package on Friday to cushion the economic blow from the COVID-19 pandemic, bucking a global trend towards withdrawing crisis-mode stimulus measures and adding strains to its already tattered finances. Spending has ballooned due to an array of payouts including those criticised for being unrelated to the pandemic, such as cash handouts to households with youth aged 18 or below, and will likely lead to additional bond issuance this year. Strong resistance can be seen at 114.30 (38.2% fib), an upside break can trigger rise towards 114.85 (23.6%fib).On the downside, immediate support is seen at 113.85(50%fib), a break below could take the pair towards 113.37 (61.8% fib).
Equities Recap
European stocks gave up early gains on Friday as concerns over the economic damage from fresh COVID-19 lockdowns in the region hammered cyclical sectors such as banks and automakers.
At (GMT 11:00 ),UK's benchmark FTSE 100 was last trading down at 0.40 percent, Germany's Dax was down by 0.12 percent, France’s CAC finished was down by 0.24 percent.
Commodities Recap
Gold edged higher on Friday as rising inflation buoyed its safe-haven appeal, although a stronger dollar and expectations that central banks would hike interest rates kept bullion on course for its first weekly decline in three.
Spot gold rose 0.1% to $1,860.20 per ounce by 0956 GMT. U.S. gold futures gained 0.2% at $1,864.30.
Oil prices dropped below $79 a barrel on Friday as a fresh surge in COVID-19 cases in Europe threatened to slow the economic recovery while investors also weighed a potential release of crude reserves by major economies to cool energy prices.
Brent crude was down $2.44, or 3%, at $78.80 a barrel by 1110 GMT, its lowest since early October, after earlier rising to as high as $82.24, extending volatility seen on Thursday.
U.S. West Texas Intermediate (WTI) crude for December delivery was down $2.30, or 2.9%, at $76.72 a barrel.
