Posted at 24 November 2023 / Categories Market Roundups
Market Roundup
•Canada Sep Core Retail Sales (MoM) 0.2%,-0.2% forecast, 0.1% previous
•Canada Sep Retail Sales (MoM) 0.6%, 0.0% forecast,-0.1% previous
•Canada Manufacturing Sales (MoM) -2.7%,0.4% previous
•Belgium Nov NBB Business Climate -15.0,-15.0 forecast,-16.8 previous
•US Nov Manufacturing PMI 49.4,49.8 forecast,50.0 previous
•US Nov Services PMI 50.8, 50.4 forecast,50.6 previous
•US Nov S&P Global Composite PMI 50.7, 50 .7 previous
•US Fed's Balance Sheet 7,811B , 7,815B previous
•US Reserve Balances with Federal Reserve Banks 3.455T,3.483T previous
Looking Ahead Economic Data(GMT)
•No Economic Data Ahead
Looking Ahead Events And Other Release(GMT)
•11:15 German Buba President Nagel Speaks
Currency Summaries
EUR/USD: The euro strengthened on Friday after data confirmed an initial estimate published in late October that showed Germany's economy shrank slightly in the third quarter compared with the previous three months.In the second quarter, Germany's economy had grown by 0.1% after stagnating in the first three months of the year. Adjusted gross domestic product (GDP) contracted by 0.4% year-on-year in the third quarter. Private consumer spending, which accounts for about two-thirds of GDP, was 0.3% lower than in the previous quarter, the statistics office said. Government consumer spending increased for the first time in more than a year by 0.2%, it added. Immediate resistance can be seen at 1.0956(23.6%fib), an upside break can trigger rise towards 1.1000( Psychological level).On the downside, immediate support is seen at 1.0914 (5DMA), a break below could take the pair towards 1.0875(38.2%fib).
GBP/USD: The pound rose on Friday nearing its highest in almost three months, lifted in part by a broad-based retreat in the dollar, but also by a rise in UK bond yields after this week's budget update included a forecast of higher government debt issuance. Also bullish for sterling was a reading of consumer confidence on Friday that showed people in Britain turned more optimistic about the outlook for the economy and their personal finances this month, although sentiment is a long off where it was before COVID struck in early 2019.By Friday, the pound traded around $1.257, up 0.28%. Against the euro, sterling was up 0.2% at 86.84 pence. Immediate resistance can be seen at 1.2621(23.65fib), an upside break can trigger rise towards 1.2656 (24thAug high).On the downside, immediate support is seen at 1.2503 (38.2%fib), a break below could take the pair towards 1.2452(Nov 22nd low).
USD/CAD: The Canadian dollar strengthened to a six-week high against its U.S. counterpart on Friday as domestic data showed a surprise increase in retail sales, countering recent evidence of a slowdown in the economy. Canadian retail sales grew by 0.6% in September from August, beating estimates for sales to stay flat, and were seen likely to gain 0.8% in October, data showed. The price of oil, one of Canada's major exports, was down 1.5% at $75.97 a barrel ahead of next week's OPEC+ meeting, which could bring some kind of agreement on production cuts in 2024.The loonie was trading 0.6% higher at 1.3610 to the greenback, after touching its strongest level since Oct. 12 at 1.3595.Immediate resistance can be seen at 1.3664 (38.2%fib), an upside break can trigger rise towards 1.3706 (23.6% fib).On the downside, immediate support is seen at 1.3595(50% fib), a break below could take the pair towards 1.3549 (61.8% fib).
USD/JPY: The dollar edged lower against the yen on Friday after Japan's core consumer price growth picked up slightly in October, after easing the previous month, reinforcing investors' views that stubborn inflation may push the Bank of Japan (BOJ) to roll back monetary stimulus before long.The nationwide core consumer price index (CPI), which excludes volatile fresh food costs, rose 2.9% year-on-year in October, government data showed on Friday, against 3.0% expected by economists in a Reuters poll.Core inflation had slowed to 2.8% in September from 3.1% in August, the first time it was below 3% since August 2022. Strong resistance can be seen at 149.77 (38.2%fib),an upside break can trigger rise towards 150.02(11DMA).On the downside, immediate support is seen 149.02 (50%fib)a break below could take the pair towards 148.34(61.8%fib).
Equities Recap
Europe's benchmark share index was flat on Friday even as eurozone bond yields remained higher, but was on course for weekly gains, while investors assessed data in Germany for clues about the country's economic outlook.
UK's benchmark FTSE 100 closed up by 0.06 percent, Germany's Dax ended up by 0.22 percent, France’s CAC finished the day up by 0. 20 percent.
U.S. stock indexes were muted in Friday’s shortened trading session for Thanksgiving, while investors focused on retailers as Black Friday sales kicked off amid signs of slowing economic conditions.
Dow Jones closed up by 0.33 percent, S&P 500 ended up by 0.06 percent, Nasdaq finished the day down by 0.11 percent.
Commodities Recap
Gold rose over the key $2,000 level on Friday, logging its second consecutive weekly gain, see-sawing against a weaker U.S. dollar on bets that the U.S. Federal Reserve is done with its interest rate-hiking cycle.
Spot gold was up 0.5% at $2,001.97 per ounce by 2:30 p.m. ET (1930 GMT), and has risen over 1% so far this week. U.S. gold futures settled 0.5% higher at $2,003.00.
Oil fell on Friday as the release of some hostages in Gaza reduced the geopolitical risk premium, but prices notched their first week of gains in over a month ahead of next week's OPEC+ meeting to decide on production cuts in 2024.
Brent crude futures settled down 84 cents, or 1%, at $80.58 a barrel, while U.S. West Texas Intermediate crude fell $1.56, or 2%, from Wednesday's close to $75.54. There was no settlement for WTI on Thursday owing to the U.S. Thanksgiving holiday.