Market Roundup
• UK Oct Manufacturing Production (MoM) 0.0%,0.1% forecast, 0.1%previous
• UK Oct Industrial Production (MoM) -0.6%,0.1% forecast, -0.4% previous
• UK Oct Industrial Production (YoY) 1.4%,2.2% forecast, 2.9% previous
•German Nov CPI (MoM) -0.2%,-0.2% forecast, -0.2% previous
• UK Oct Trade Balance -13.93B , -14.06B forecast, -14.74B previous
• UK Oct GDP (YoY) (Q3) 4.6%,6.6% forecast, 5.3% previous
• UK Oct GDP (MoM) 0.1%,0.4% forecast, 0.6% previous
Looking Ahead - Economic Data (GMT)
•13:00 Russia Oct Trade Balance 20.00B previous
•13:00 US NIESR Monthly GDP Tracker 1.0% previous
•13:30 US Capacity Utilization Rate (Q3) 83.0% forecast,82.0% previous
•13:30 US Nov Core CPI (YoY) 4.9%forecast, 4.6% previous
•13:30 US Nov CPI (MoM) 0.7% forecast, 0.9% previous
•13:30 US Nov Core CPI (MoM) 0.5% forecast, 0.6% previous
•13:30 US Nov Core CPI Index 281.70 previous
•13:30 US Nov Real Earnings (MoM) -0.9% previous
•15:0\0 US Dec Michigan Inflation Expectations 4.9% forecast, 4.9% previous
•15:0\0 US Dec Michigan Consumer Sentiment 67.1 forecast, 67.4 previous
•15:0\0 US Dec Michigan Current Conditions 71.0 forecast, 73.6 previous
•15:0\0 US Nov Cleveland CPI (MoM) 0.6% previous
•18:0\0 U.S. Baker Hughes Oil Rig Count 467 previous
•18:0\0U.S. Baker Hughes Total Rig Count 569 previous
Fxbeat
EUR/USD: The euro dipped on Friday as dollar gained ahead of a critical U.S. inflation reading that will set the tone ahead of a flurry of central bank meetings next week. The U.S. data, due at 8:30 a.m. ET, is likely to show consumer prices rose 6.8% in November, a level that would be the highest since 1982. The euro was 0.21 lower at $1.1269 at 11:20 GMT, still not far from its 2021 low of $1.1186. Immediate resistance can be seen at 1.1370(38.2% fib), an upside break can trigger rise towards 1.1390 (30 DMA).On the downside, immediate support is seen at 1.1289 (38.2%fib), a break below could take the pair towards 1.1190(23.6% fib).
GBP/USD: The British pound inched down on Friday to within striking distance of its 2021 low against the dollar, as the UK's pandemic curbs and weak economic data dampened expectations that the Bank of England would raise interest rates soon.Britain's economy grew by a weaker-than-expected 0.1% in October, leaving it 0.5% smaller than in February 2020, just before the country went into its first COVID-19 lockdown, the Office for National Statistics said.The dollar was firm as traders wagered U.S. inflation figures could settle the course of interest rate rises next year.The pound was down 0.1% at $1.3200 against the dollar, not far from Wednesday's 2021 low of $1.3162. Immediate resistance can be seen at 1.3249 (38.2%fib), an upside break can trigger rise towards 1.3274 (14DMA).On the downside, immediate support is seen at 1.3185(38.2%fib), a break below could take the pair towards 1.3110 (23.6%fib).
USD/CHF: The dollar strengthened against the Swiss franc on Friday as traders prepared for U.S. inflation figures later that could cement the course of interest rate rises next year. The U.S. consumer price index for November is expected to have risen 6.8% year-on-year, overtaking a 6.2% increase in October, which was the fastest gain in 31 years. Any upside surprise will likely be interpreted as a case for a faster taper of the Federal Reserve's asset purchases and sooner interest rate rises a negative for assets deemed riskier like those in emerging markets. At (GMT 12:24), greenback gained 0.11% versus the Swiss franc to 0.9245. Immediate resistance can be seen at 0.9247(14DMA), an upside break can trigger rise towards 0.9275 (23.6%fib).On the downside, immediate support is seen at 0.9228 (38.2%fib), a break below could take the pair towards 0.9193(50%fib).
USD/JPY: The dollar gained against the Japanese yen on Friday as greenback struggled to regain gain traction against yen as investors waited for a key Federal Reserve policy meeting due next week. Expectations of U.S. tapering had helped the dollar index rise to over a year high in late November, before Omicron's emergence sent it lower. Investors' focus now turns to Friday's U.S. Consumer Price Index (CPI) report, which could influence the Fed's policy decision in its Dec. 14-15 policy meeting. CPI inflation data due Friday could also have an effect on the Fed's decision. Strong resistance can be seen at 113.94 (23.6%fib), an upside break can trigger rise towards 114.52 (Nov 19th high).On the downside, immediate support is seen at 113.32 (38.2%fib), a break below could take the pair towards 112.83 (50%fib).
Equities Recap
European stocks inched lower on Friday as nervousness around the Omicron COVID-19 variant and U.S. inflation reading due later in the day kept sentiment in check.
At (GMT 12:24),UK's benchmark FTSE 100 was last trading down at 0.03%percent, Germany's Dax was down by 0.05 % percent, France’s CAC finished was down by 0.06% percent.
Commodities Recap
Gold fell to a one-week low on Friday ahead of U.S. consumer price data for November, with some investors expecting a higher inflation reading could prompt the Federal Reserve to start stimulus tapering and interest rate hikes earlier than anticipated.
Spot gold fell 0.2% to $1,770.90 per ounce by 0941 GMT. U.S. gold futures fell 0.3% to $1,771.10.
Oil prices were on track for their biggest weekly gain since late August, with market sentiment buoyed by easing concerns over the Omicron coronavirus variant's impact on global economic growth and fuel demand.
Brent crude futures were up 0.2%, or 11 cents, at US$74.53 a barrel by 0927 GMT after falling 1.9% on Thursday.
US West Texas Intermediate (WTI) crude futures rose 27 cents, or 0.4%, to US$71.21 after sliding 2% in a volatile session the previous day.
