Posted at 21 April 2023 / Categories Market Roundups
Market Roundup
• Canada Feb Core Retail Sales (MoM) -0.7%, -0.1% forecast, 0.9% previous
•Canada Feb Retail Sales (MoM) -0.2%,-0.6% forecast, 1.4% previous
•US Apr Manufacturing PMI 50.4, 49.0 forecast, 49.2 previous
•US Apr Services PMI 53.7,51.5 forecast,52.6 previous
•US Apr S&P Global Composite PMI 53.5, 52.8 forecast, 52.3 previous
• U.S. Baker Hughes Total Rig Count 753 ,748 previous
• U.S. Baker Hughes Oil Rig Count 591 , 588 previous
Looking Ahead Economic Data (GMT)
•No data ahead
Looking Ahead Events And Other Releases(GMT)
• No events ahead
Currency Summaries
EUR/USD: The euro strengthened on Friday after economic data showing solid business activity nudged up expectations for the European Central Bank’s hiking path. Surveys indicated the euro zone’s economic recovery unexpectedly gathered pace this month. French business activity grew more than forecast in April, while Germany saw a third straight month of expansion. The ECB is unlikely to return to providing guidance on its next policy moves given the uncertainty in the outlook, ECB Vice President Luis de Guindos said on Friday. The euro was last up 0.1% against the dollar at $1.0982 , recovering from a session low of $1.0938. Immediate resistance can be seen at 1.0990(5DMA), an upside break can trigger rise towards 1.1036(Higher BB).On the downside, immediate support is seen at 1.0905(38.2%fib ), a break below could take the pair towards 1.0848 (April 11th low).
GBP/USD: The pound initially dipped on Friday but recovered ground investors digested mixed UK economic data. .The PMI spanning services and manufacturing firms - rose to 53.9 in April from 52.2 in March, putting it further above the 50 line denoting growth for the third consecutive month and representing the strongest growth since April last year. Traders expect more interest rate hikes from the Bank of England. Rates are now seen rising to around 4.9% by September, from 4.25% currently, according to pricing in derivatives markets.Yet the influence of higher rate expectations on the pound has been negligible this week, as economic concerns and dollar strength have weighed on the currency. Immediate resistance can be seen at 1.2440(Daily high), an upside break can trigger rise towards 1.2480(23.6%fib).On the downside, immediate support is seen at 1.2379(Daily low), a break below could take the pair towards 1.2353(38.2%fib).
USD/CAD: The Canadian dollar weakened to a three-week low against its U.S. counterpart on Friday as domestic retail sales data suggested that higher borrowing costs are taking a toll on the economy.Canadian retail sales dipped by 0.2% in February from January, and are expected to drop another 1.4% in March, according to data from Statistics Canada. The Bank of Canada has lifted its benchmark interest rate to a 15-year high of 4.50% to tackle inflation.The Canadian dollar was trading 0.5% lower at 1.3545 to the greenback, or 73.83 U.S. cents, after touching its weakest intraday level since March 31 at 1.3563. Immediate resistance can be seen at 1.3572(23.6%fib), an upside break can trigger rise towards 1.3621 (Higher BB).On the downside, immediate support is seen at 1.3521 (38.2%fib ), a break below could take the pair towards 1.3477 (50%fib).
USD/JPY: The dollar dipped against Japan's yen on Friday mid data showing Japanese consumer inflation held steady above the central bank's target in March. Japan’s consumer inflation held steady above the central bank's target in March and an index excluding fuel costs rose at the fastest annual pace in four decades, data showed, indicating broadening price pressure in the world's third-largest economy. The data may keep alive market expectations that the Bank of Japan (BOJ) could begin to phase out later this year a massive stimulus programme that has drawn public criticism for distorting bond markets and crushing financial institutions' margins. The dollar was last slightly lower against the Japanese unit at 134.17 yen . Strong resistance can be seen at 134.67(23.6%fib), an upside break can trigger rise towards 135.18(Higher BB).On the downside, immediate support is seen at 133.65 (38.2%fib), a break below could take the pair towards 132.79(50%fib)
Equities Recap
European shares ended higher on Friday as strong quarterly earnings boosted shares of SAP and EssilorLuxottica, offsetting a slump in miners.
UK's benchmark FTSE 100 closed down by 0.15 percent, Germany's Dax ended up by 0.54 percent, France’s CAC finished the day up by 0. 51 percent.
Major U.S. stock indexes ended with fractional gains on Friday following mixed earnings results as investors assessed how conflicting economic data might influence interest rates and looked ahead to a massive week of corporate reports.
Dow Jones closed up by 0.07 percent, S&P 500 ended up by 0.09 percent, Nasdaq finished the day up by 0.11 percent.
Commodities Recap
Gold prices fell sharply on Friday and were headed for their worst week in eight as hawkish remarks by U.S. Federal Reserve officials through the week bolstered bets for at least one more interest rate hike and buoyed the dollar.
Spot gold dropped 1.2% to $1,979.63 per ounce by 2:35 p.m. EDT (1835 GMT). U.S. gold futures settled 1.4% lower to $1,990.50.
Oil prices edged higher on Friday on strong economic data in the euro zone and Britain, but futures fell for the week as interest rate and demand uncertainty weighed.
Brent futures settled up 56 cents at $81.66 per barrel. U.S. West Texas Intermediate crude (WTI) rose 50 cents to $77.87 per barrel.