Market Roundup
•UK Jul Retail Sales (MoM) 0.3%, -0.2% forecast,-0.1% previous
•UK Jul Public Sector Net Borrowing 4.18B, 25.30B forecast, 22.12B previous
•German Jul PPI (YoY) 37.2%, 32.0% forecast, 32.7% previous
•UK Jul Core Retail Sales (YoY) -3.0%,-3.1% forecast, -5.9% previous
•UK Core Retail Sales (MoM) 0.4%,-0.2% forecast, 0.4% previous
•UK Jul Retail Sales (YoY) -3.4%, -3.3% forecast, -5.8% previous
•EU Jun Current Account n.s.a 3.2B,-15.4B previous
Looking Ahead – Economic data (GMT)
•12:30 Canada Jun Core Retail Sales (MoM) 0.9% forecast, 1.9% previous
•12:30 Canada Jun Retail Sales (MoM) 0.3% forecast, 2.2% previous
•17:00 U.S. Baker Hughes Oil Rig Count 601 previous
•17:00 U.S. Baker Hughes Total Rig Count 763 previous
Looking Ahead - Events, Other Releases (GMT)
•13:00 US FOMC Member Barkin Speaks
Fxbeat
EUR/USD: The euro declined against dollar on Friday as investors worried about further economic slowdown after Federal Reserve officials reiterated the need for higher rates. St. Louis Fed President James Bullard said he is leaning toward supporting a third straight 75-basis-point interest rate hike in September, while San Francisco Fed colleague Mary Daly said hiking rates by 50 or 75 basis points next month would be reasonable. European Central Bank board member Isabel Schnabel fueled inflation worries by saying consumer prices could still accelerate in the short-term. The euro is on course to decline 1.7% since last Friday, which would be its worst week since July 8. Immediate resistance can be seen at 1.0101(Daily high), an upside break can trigger rise towards 1.0141(38.2%fib).On the downside, immediate support is seen at 1.0033(23.6%fib), a break below could take the pair towards 1.0000(Psychological level).
GBP/USD: The British pound weakened against the dollar on Friday as a surprise uptick in UK retail sales failed to lift a weakening pound, as inflation and recession risks continue to dominate traders’ minds. British shoppers spent more than expected last month after being enticed by online shopping deals, official figures showed on Friday. In contrast, data showed UK consumer sentiment plummeting to a record low in August. Markets remain focused on data earlier this week showing inflation at the highest level in 40 years, which ramped up fears of an economic slowdown and increased pressure on the Bank of England (BoE) to bring down prices. By 0913 GMT the pound was down 0.41% against the dollar at $1.18860.Immediate resistance can be seen at 1.1883(38.2%fib), an upside break can trigger rise towards 1.1981(50%fib).On the downside, immediate support is seen at 1.1812(Daily low),a break below could take the pair towards 1.1755 (23.6%fib).
USD/CHF: The dollar rose higher against the Swiss franc on Friday as Federal Reserve officials continued to talk up the need for further interest rate hikes. St. Louis Fed President James Bullard said he was currently leaning toward supporting a third straight 75-basis-point rate hike next month. Signs of weakness in China and Europe fuelled recession worries, while hawkish Fed commentary signalling it intends to keep raising rates to tame inflation saw the dollar notch one-month highs. At (GMT 12:03), greenback gained 0.08% versus the Swiss franc to 0.9567. Immediate resistance can be seen at 0.9590(23.6%fib), an upside break can trigger rise towards 0.9635(50DMA).On the downside, immediate support is seen at 0.9534(38.2%fib), a break below could take the pair towards 0.9502(11DMA)
USD/JPY: The dollar strengthened against yen on Friday as investors continued to digest the Fed meeting minutes .Markets have been volatile amid concerns about a looming recession, even though Fed officials indicated in the minutes of their July meeting released on Wednesday that they would adopt a less aggressive stance if inflation starts to recede. A string of Fed officials, including St. Louis Fed President James Bullard and San Francisco Fed President Mary Daly, reiterated on Thursday that the U.S. central bank needs to keep raising interest rates to rein in inflation. Strong resistance can be seen at 137.09(Daily high), an upside break can trigger rise towards 137.59(23.6%fib).On the downside, immediate support is seen at 135.95 (38.2%fib), a break below could take the pair towards 135.53 (30DMA).
EquitiesRecap
European stock indexes fell on Friday after German producer prices saw their biggest rise on record, while the dollar hit a one-month high as investors stayed cautious.
At (GMT 12:07),UK's benchmark FTSE 100 was last trading up at 0.26% percent, Germany's Dax was down by 0.56% percent, France’s CAC was down by 0.39% percent
Commodities Recap
Gold was headed for its first weekly drop in a month after hitting a three-week low on Friday, under pressure from a stronger dollar and rising U.S. bond yields as the Federal Reserve looked set for more interest rate hikes.
Spot gold fell for a fifth straight session, down 0.4% at $1,750.51 per ounce as of 1110 GMT, in what could be its longest losing streak since November 2021.
Oil prices slipped on Friday after two days of gains and are heading for weekly losses as a strong dollar and concerns about a global economic slowdown weigh amid soaring inflation rates.
Brent crude futures were down $1.99, or 2%, at $94.60 a barrel by 1122 GMT. U.S. West Texas Intermediate crude was at $88.67 a barrel, down $1.83, or 2%.
