•Market Roundup
•UK Business Investment (YoY) (Q4) -10.3%,-19.2% previous
•UK Monthly GDP 3M/3M Change 1.0%,4.1% previous
•UK Dec Trade Balance Non-EU -5.20B , -8.01B previous
•UK Dec Trade Balance -14.32B, -15.00B forecast, -16.01B previous
•UK GDP (YoY) (Q4) -7.8%,-8.1% forecast, -8.6% previous
•UK GDP Dec Manufacturing Production (MoM) 0.3%,0.6% forecast, 0.7% previous
•UK GDP (QoQ) (Q4) 1.0%,0.5% forecast, 16.0% previous
•Spanish Jan CPI (YoY) 0.5%,0.6% forecast, -0.5% previous
•Spanish Jan HICP (YoY) 0.4% 0.6% forecast, 0.6% previous
Looking Ahead - Economic Data (GMT)
•13”30 Canada Dec Wholesale Sales (MoM) -1.5% forecast, 0.7% previous
•14:00 UK NIESR Monthly GDP Tracker 0.9% previous
•14:00 UK NIESR GDP Estimate 1.5% previous
•15:00 US Feb Michigan Consumer Expectations 75.7 forecast, 74.0 previous
•15:00 US Feb Michigan 5-Year Inflation Expectations 2.70% previous
•15:00 US Feb Michigan Consumer Sentiment 80.8 forecast, 79.0 previous
•18:00 US U.S. Baker Hughes Total Rig Count 384 previous
Looking Ahead - Economic events and other releases (GMT)
•US FOMC Member Williams Speaks
Fx Beat
EUR/USD: The euro edged lower against dollar on Friday as as investors awaited progress towards more U.S. fiscal stimulus. Investors weighed some tepid economic data against increasing COVID-19 vaccinations and the prospect that more government spending and continued cheap money from central banks will drive higher growth and, eventually, inflation.The euro was last trading down 0.13% at $1.2112 . Immediate resistance can be seen at 1.2133 (50%fib), an upside break can trigger rise towards 1.2209 (61.8%fib).On the downside, immediate support is seen at 1.2094 (5EMA), a break below could take the pair towards 1.2065 (38.2%fib).
GBP/USD: The British pound slipped below $1.38 against the dollar after data showed Britain’s economy suffered a record slump in 2020, but grew in the final quarter. Official figures showed gross domestic product (GDP) grew 1.0% from October through December, the top of a range of economists’ forecasts . Britain’s economy grew 1.2% in December alone, after a 2.3% fall in output in November when there was a partial lockdown, pointing to greater resilience to COVID restrictions than at the start of the pandemic. Immediate resistance can be seen at 1.3850 (23.6%fib), an upside break can trigger rise towards 1.3900(Psychological level).On the downside, immediate support is seen at 1.3749 (5 DMA), a break below could take the pair towards 1.3695 (38.2%fib).
USD/CHF: The dollar gained against the Swiss franc on Friday as investors awaited progress towards more U.S. fiscal stimulus. Global finance chiefs, including U.S. Treasury Secretary Janet Yellen and members of the Group of Seven (G7) rich nations, meet on Friday, vowing to rebuild bridges with allies to steer the world economy out of its deep slump.Economic data at 10 a.m. ET (1500 GMT) is expected to show that a reading on the University of Michigan’s consumer sentiment index edged up to 80.8 in February from 79 in January. Immediate resistance can be seen at 0.8993 (38.2%fib), an upside break can trigger rise towards 0.8972 (23.6%fib).On the downside, immediate support is seen at 0.8900 (50%fib), a break below could take the pair towards 0.8867(61.8%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Friday as mixed U.S. economic data caused some investors to show restraint. U.S. weekly unemployment claims fell less than expected and core consumer prices rose at a slower pace, which caused some traders to temper the optimism about the economic outlook. The dollar index edged up by 0.05% on Friday but was still on course for a 0.6% weekly decline. Strong resistance can be seen at 105.21 (Daily high), an upside break can trigger rise towards 105.45(23.6%fib ).On the downside, immediate support is seen at 104.43 (50%fib), a break below could take the pair towards 103.08 (61.8%fib).
Equities Recap
European stocks edged lower on Friday, on track to end the second straight week of gains, as investors awaited more signs of progress in U.S. stimulus measures, while a rise in shares of ASML and ING kept declines in check.
At (GMT 13:20),UK's benchmark FTSE 100 was last trading higher at 0.15 percent, Germany's Dax was down by 0.46 percent, France’s CAC was last up by 0.19percent.
Commodities Recap
Gold slipped as the dollar rebounded on Friday while platinum took a breather after expectations of a rebound in industrial demand drove a rally to a more than six-year peak and put it on course for its best week in two months.
Spot gold lost 0.5% to $1,816.40 an ounce by 1221 GMT and U.S. gold futures were down 0.6% at $1,816.30.
Oil prices dropped for a second day on Friday, pulling further back from a one-year high after OPEC again lowered its demand forecast and the International Energy Agency said the market was still over-supplied.
Brent crude was down 39 cents, or 0.6% at $60.75 a barrel by 0743 GMT, having dropped half a percent the previous session. U.S. oil was down 44 cents, or 0.8% at $57.80 a barrel, after falling by 0.8% on Thursday.
