Market Roundup
•German May PPI (YoY ) 7.2%,6.4% forecast, 5.2% previous
•German May PPI (MoM) 1.5% , 0.7% forecast, 0.8% previous
•UK May Retail Sales (MoM) -1.4%,1.6% forecast, 9.2% previous
•UK May Core Retail Sales (MoM) -2.1%,1.5% forecast, 9.0% previous
•UK May Core Retail Sales (YoY) 21.7%,27.3% forecast, 37.7% previous
•UK May Retail Sales (YoY) 24.6%,29.0% forecast, 42.4% previous
•EU April Current Account n.s.a 31.4B, 31.0B previous
•EU April Current Account 22.8B, 17.8B previous
Looking Ahead - Economic Data (GMT)
•12:30 Canada May New Housing Price Index (MoM) 1.9% previous
•17:00 U.S. Baker Hughes Oil Rig Count 359 previous
•17:00 U.S. Baker Hughes Total Rig Count 456 previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro was flat against dollar on Friday as the single currency struggled to shake off the pressure exerted by the Federal Reserve's sudden aggressive change of tone. The euro was unable to make up for the losses of the past two days. The euro was hovering around $ 1.19, unchanged against the dollar, and was 1.6% on track for its worst week since October. Immediate resistance can be seen at 1.1928(38.2%fib), an upside break can trigger rise towards 1.1992 (50%fib).On the downside, immediate support is seen at 1.1885(Daily low), a break below could take the pair towards 1.1840 (23.6% fib).
GBP/USD Sterling extended its fall against the U.S. dollar on Friday, dropping below $1.39, hurt by the U.S. Federal Reserve’s hawkish surprise while data also showed an unexpected fall in Britain’s retail sales.The pound dropped against a strengthening dollar on Thursday after the Fed surprised markets by signalling it would raise interest rates and end emergency bond-buying sooner than expected On Friday, it fell further against both dollar and euro. At 0747 GMT it was down 0.4% on the day $1.3871, having touched as low as $1.38555 - its weakest since May 4. It was on track for its worst week since September 2020.Immediate resistance can be seen at 1.3929 (61.8% fib), an upside break can trigger rise towards 1.3983(50%fib).On the downside, immediate support is seen at 1.3886 (23.6%fib), a break below could take the pair towards 1.3800 (May 3rd low).
USD/CHF: The dollar rose against the Swiss franc on Friday as the dollar crept up to near two-month highs after the U.S. Federal Reserve this week projected higher interest rates in 2023. While the Fed indicated no clear end to supportive policy measures such as bond buying, signals of faster-than-expected rate hikes underscored its inflation concerns as the U.S. economy recovers from the COVID-19 pandemic. Immediate resistance can be seen at 0.9203 (23.6%fib), an upside break can trigger rise towards 0.9242 (April 16th high).On the downside, immediate support is seen at 0.9146 (38.2%fib), a break below could take the pair towards 0.9107 (50%fib).
USD/JPY: The dollar edged higher against the yen on Friday after Bank of Japan kept its main policy settings steady, as expected. On Friday, the Bank of Japan announced a plan to increase funding to address climate change and, together with more and more central banks, stepped up efforts to deal with economic and financial impacts, which surprised the market. The central bank also maintained its massive stimulus to support the economy and extended a September deadline for its pandemic-relief programme, suggesting that Japan will lag well behind the United States in ending crisis-mode policies. Strong resistance can be seen at 110.49 (38.2%fib), an upside break can trigger rise towards 111.07 (23.6%fib).On the downside, immediate support is seen at 110.01(50%fib), a break below could take the pair towards 109.55 (61.8% fib).
Equities Recap
A decline in banking and energy stocks hit European stocks on Friday, with an aggressive political outlook from the US Federal Reserve also reducing the STOXX 600's fifth consecutive weekly gain.
At (GMT 11:30 ),UK's benchmark FTSE 100 was last trading down at 1.13 percent, Germany's Dax was down by 0.93 percent, France’s CAC finished was down by 0.55 percent.
Commodities Recap
Gold rose 1% on Friday as a pause in the dollar's rally helped the gold bullion regain some ground from a sharp decline in previous sessions, fueled by the Federal Reserve’s hawkish tilt .
Spot gold climbed to $1,790.59 per ounce by 0908 GMT, but was down 4.5% for the week. U.S. gold futures gained 1% to $1,791.70.
Oil prices fell for the second year in a row on Friday, as the US dollar soared in anticipation of a US interest rate hike.
Brent crude futures were down 52 cents, or 0.7%, at $72.56 a barrel as of 1100 GMT, extending a 1.8% decline on Thursday. The contract is set to be largely steady for the week.
