Market Roundup
•UK Apr Nationwide HPI (MoM) 0.3%,0.8% forecast , 1.1% previous
•UK Apr Nationwide HPI (YoY) 12.1%, 12.6% forecast, 14.3% previous
•Swiss Mar Retail Sales (YoY) -6.6%, 12.8% previous
•French CPI (MoM) 0.4%, 1.4% previous
•French CPI (YoY) 4.8%, 4.5% previous
•French HICP (MoM) 0.5%,1.6% previous
•Spanish GDP (QoQ) (Q1) 0.3%,0.5% forecast, 2.2% previous
•German GDP (QoQ) (Q1) 0.2%, 0.1% forecast,-0.3% previous
•German GDP (YoY) (Q1) 4.0%, 3.8% forecast,1.8% previous
•EU Apr CPI (YoY) 7.5%, 7.5% forecast, 7.4% previous
• Italian Apr CPI (YoY) 6.2%, 6.3%% forecast, 6.5%% previous
• Italian Apr HICP (YoY) 6.6%,6.5% forecast, 6.8% previous
• Italian Apr Italian HICP (MoM) 0.6%,1.0% forecast, 2.4% previous
• Italian Apr CPI (MoM) 0.2%,0.9% forecast,1.0% previous
•EU CPI (MoM) 0.6%,1.8% forecast, 2.4% previous
•US Employment Benefits (QoQ) (Q1) 1.80%, 0.90% previous
•US Employment Wages (QoQ) (Q1) 1.20%, 1.10% previous
•US Employment Cost Index (QoQ) (Q1)1.4%,1.1% forecast, 1.0% previous
•US Mar Personal Income (MoM) 0.5%, 0.4% forecast, 0.5% previous
•US Mar Personal Spending (MoM) 1.1%,0.7% forecast, 0.2% previous
•US Mar Core PCE Price Index (MoM) 0.3%, 0.3% forecast, 0.4% previous
•US Mar Core PCE Price Index (YoY) 5.2%, 5.3% forecast, 5.4% previous
•Canada Feb GDP (MoM) 1.1%, 0.8% forecast, 0.2% previous
• Chicago Apr PMI 58.5, 62.0 forecast , 62.9 previous
Looking Ahead - Economic Data (GMT)
• 14:00 US Apr Michigan Inflation Expectations 5.4% forecast, 5.4% previous
• 14:00 US Apr Michigan Consumer Sentiment 65.7 forecast ,59.4 previous
• 14:00 US Michigan Consumer Expectations 64.1 forecast, 54.3 previous
• 14:00 US Apr Michigan Current Conditions 67.8 forecast, 68.1 previous
• 17:00 U.S. Baker Hughes Oil Rig Count 549 previous
• 17:00 U.S. Baker Hughes Total Rig Count 695 previous
Fxbeat
EUR/USD: The euro edged higher on Thursday as dollar edged down, but was within sight of its best monthly gain in a decade, buoyed by bets on rising expectations for U.S. rate hikes. On the data front, Euro zone inflation rose to 7.5% in April from 7.4% in March, in line with expectations, driven by a persistent surge in energy and food prices that have been exacerbated by the Russian invasion of Ukraine.The European Commission forecast just before the invasion that euro zone growth would be 0.3% quarter-on-quarter, so the preliminary data, if confirmed, would suggest the war and the related commodity and food price spikes cut growth by 0.1 percentage points. Euro zone economic growth was slower than expected in the first three months of the year. Immediate resistance can be seen at 1.0583(38.2%fib), an upside break can trigger rise towards 1.0662 (50%fib).On the downside, immediate support is seen at 1.0475(23.6%fib), a break below could take the pair towards 1.0400 (Psychological level).
GBP/USD: Sterling rose against the dollar on Friday, but was still set for its sharpest monthly drop since October 2016, while holding its ground against the euro.Investors' focus remained on monetary tightening ahead of next week's policy meeting of the Bank of England, which might cave in to the dovish minority, further weakening the pound. The British public's expectations for inflation have fallen after rising for several months, according to a survey that the Bank of England keeps track of as it considers how fast it needs to keep raising interest rates. The pound was up 0.8% against the dollar at $1.2559, after hitting $1.2412 on Thursday, its lowest level since July 2020.Immediate resistance can be seen at 1.2562 (38.2%fib), an upside break can trigger rise towards 1.2641(50%fib).On the downside, immediate support is seen at 1.2444 (23.6%fib), a break below could take the pair towards 1.2400(Psychological level).
USD/CHF: The dollar retreated against Swiss franc on Friday but was still on track for monthly gain having been boosted by a combination of expectations for U.S. rate hikes and growth concerns in China and Europe. In the final trading day of a seismic month for currency markets, major currency pairs pulled back slightly from their recent trajectories as global markets stabilised and investors took profit on dollar gains. The U.S. dollar index, which hit a two-decade high of 103.93 in the wake of the yen’s tumble, was last at 103.53 and up more than 5.3% through April. If sustained, that would make for its best monthly gain since May 2012. Immediate resistance can be seen at 0.9751(23.6 % fib), an upside break can trigger rise towards 0.9785(Higher BB).On the downside, immediate support is seen at 0.9671(38.2%fib), a break below could take the pair towards 0.9611(38.2 % fib ).
USD/JPY: The dollar edged lower against dollar on Friday as worrying U.S. economic data rekindled some interest in the safe-haven yen. The disappointing U.S. GDP number could take some pressure off the Fed to tighten quite as aggressively as it has hinted. Fed officials have aligned around plans to accelerate the pace of interest rate hikes this year, but remain split over what could be the make-or-break decision of where to stop to avoid dragging the economy into recession . The yen was last at 130.72 per dollar after falling as low as 131.25 overnight following the BOJ’s pledge to buy endless amounts of bonds daily as needed. The yen is down almost 7% in April, its worst month since Nov. 2016.Strong resistance can be seen at 131.46(23.6%fib), an upside break can trigger rise towards 132.15(Higher BB).On the downside, immediate support is seen at 129.2538.2%fib), a break below could take the pair towards 128.81(9DMA).
Equities Recap
European shares on Friday rose to their highest in a week as strong earnings reports and a rally in technology stocks boosted risk appetite at the end of a volatile month dominated by concerns about slowing global growth.
At (GMT 13:34 ),UK's benchmark FTSE 100 was last trading up at 0.40 percent, Germany's Dax up by 1.02 percent, France’s CAC finished was up by 0.79 percent.
Commodities Recap
Gold prices rose more than a 1% on Friday, boosted by a pullback in the dollar, although bullion was headed for a monthly drop as aggressive interest rate hikes by the U.S. Federal Reserve loom.
Spot gold rose 1.2% to $1,916.21 per ounce by 1144 GMT. But prices have lost about 1.1% so far this month, its first monthly drop since January.
Oil prices rose for a fourth day on Friday as fears over Russian supply disruption trumped COVID-19 lockdowns in China, the world's biggest crude importer.
Brent crude futures rose by $1.90, or 1.8%, to $109.49 a barrel by 1127 GMT after gaining 2.1% in the previous session. The front-month June contract expires later on Friday. The more active July contract rose by 94 cents to $104.41.
U.S. West Texas Intermediate crude gained 86 cents, or 0.8%, to $106.22 after advancing by 3.3% on Thursday.
