Market Roundup
•German Oct WPI (YoY) 15.2% , 13.2% previous
•Swiss Oct PPI (MoM) 5.1% , 4.5% previous
•Swiss Oct PPI (YoY) 4.5% previous
•EU Sep Industrial Production (YoY) 5.2% ,4.1%forecast, 5.1% previous
•EU Sep Industrial Production (MoM) -0.2%, -0.5% forecast, -1.6% previous
Looking Ahead Economic Data (GMT)
•14:00 US Sep JOLTs Job Openings 10.300M forecast, 10.439M previous
•14:00 US Nov Michigan 5-Year Inflation Expectations 2.90% previous
•14:00 US Nov Michigan Consumer Expectations 70.0 forecast, 67.9 previous
•14:00 US Nov Michigan Inflation Expectations 4.8% previous
•15:00 US Nov Michigan Current Conditions 80.0 forecast, 77.7 previous
•15:00 US Nov Michigan Consumer Sentiment 72.4 forecast, 71.7 previous
•18:00 US U.S. Baker Hughes Total Rig Count 544 previous
•18:00 U.S. Baker Hughes Oil Rig Count 444 previous
Looking Ahead - Events, Other Releases (GMT)
•13:50 ECB's Lane Speaks
•14:00 UK MPC Member Haskel Speaks
•17:10 US FOMC Member Williams Speaks
Fxbeat
EUR/USD: The euro declined on Friday as dollar held firm after Wednesday’s strong U.S. inflation reading fanned expectations the Fed would tighten monetary policy faster than previously thought. An index of the dollar against six other currencies was slightly firmer at 95.160 in its third straight day of gains and hitting its highest level since July 2020. The euro slipped back to a 16-month low at $1.1436.Investors have become increasingly bearish on the outlook for the single currency. Immediate resistance can be seen at 1.1522(38.2%fib), an upside break can trigger rise towards 1.1544(5DMA).On the downside, immediate support is seen at 1.1438 (23.6%fib), a break below could take the pair towards 1.1400(Psychological level).
GBP/USD: Sterling edged higher on Friday after reports suggesting Britain wanted to de-escalate tensions with the European Union and renew efforts to find a solution over a Northern Ireland trade dispute. Sterling was under renewed pressure this week amid worries that disagreements between Britain and the EU could trigger major trade disruption. Since leaving the EU last year, Britain has delayed the introduction of some border checks between the British province of Northern Ireland and EU-member Ireland. Sterling edged 0.2% higher versus the dollar to $1.3385 at 0940 GMT. Immediate resistance can be seen at 1.3540 (38.2%fib), an upside break can trigger rise towards 1.2678(23.6%fib).On the downside, immediate support is seen at 1.3363(38.2%fib), a break below could take the pair towards 1.3300(Psychological level).
USD/CHF: The dollar strengthened against the Swiss franc on Friday as surprisingly strong U.S. inflation print shocked markets and prompted investors to advance their bets on a U.S rate hike to as early as mid-2022. Data on Wednesday showed a broad-based rise in U.S. consumer prices last month at the fastest annual pace since 1990, calling into question the Fed’s contention that price pressures will be “transitory” and fuelling speculation that policymakers would lift interest rates sooner than previously thought. Markets now price a first rate increase by July and a high likelihood of another by November. Immediate resistance can be seen at 0.9236 (50 % fib), an upside break can trigger rise towards 0.9250 (Higher BB).On the downside, immediate support is seen at 0.9202 (38.2%fib), a break below could take the pair towards 0.9160 (23.6% fib ).
USD/JPY: The dollar strengthened against the Japanese yen on Friday as surprisingly strong U.S. inflation reading on Wednesday continued to boost dollar. The U.S. consumer price index rose 6.2% year-on-year in October, the strongest advance since November 1990. The Fed has said it will begin to reduce its pandemic-era asset purchase program this month. An index of the dollar against six other currencies rose to a 16-month high of 95.264.The yen softened to 114.30 per dollar, near its four-year low hit last month. Strong resistance can be seen at 114.16 (23.6%fib), an upside break can trigger rise towards 114.57(Higher BB).On the downside, immediate support is seen at 113.60(38.2% fib), a break below could take the pair towards 113.44(5DMA).
Equities Recap
European shares were largely muted on Friday, but were on course to mark their sixth straight weekly gains, with luxury stocks flying high on the back of strong earnings from Cartier-owner Richemont.
At (GMT 11:49 ),UK's benchmark FTSE 100 was last trading down at 0.31 percent, Germany's Dax was up by 0.23 percent, France’s CAC finished was up by 0.39 percent.
Commodities Recap
Gold prices fell on Friday, breaking a six-session rally as a firmer dollar took some shine off the metal, but concerns over persistent inflation kept bullion on track for a second week of gains.
Spot gold dropped 0.6% to $1,851.31 per ounce by 0928 GMT, after hitting a five-month peak on Wednesday. U.S. gold futures were down 0.6% at $1,852.80.
Oil prices fell on Friday, wiping out gains from the previous session as the dollar continued to firm on expectations that the U.S. central bank will bring forward an increase to interest rates in an effort to tame inflation.
Brent crude futures dropped 86 cents, or 1%, to $82.01 a barrel and U.S. West Texas Intermediate (WTI) crude was down $1.08, or 1.3%, at $80.51.
