Market Roundup
•US Nov Michigan 5-Year Inflation Expectations 3.2%,3.0% previous
•US Nov Michigan 1-Year Inflation Expectations 4.4%,4.2% previous
•US Nov Michigan Consumer Expectations 56.9, 59.5 forecast, 59.3 previous
•US Nov Michigan Current Conditions 65.7,69.5 forecast,70.6 previous
•US Nov Michigan Consumer Sentiment 60.4, 63.7 forecast,63.8 previous
•U.S. Baker Hughes Oil Rig Count 494,496 previous
• U.S. Baker Hughes Total Rig Count 616,618 previous
Looking Ahead Economic Data(GMT)
•No Data Ahead
Looking Ahead Events And Other Release(GMT)
•10:00 EU ECOFIN Meetings
•20:30 USFOMC Member Bostic Speaks
Currency Summaries
EUR/USD: The euro edged higher against dollar on Friday as investors digested comments from Federal Reserve Officials .Fed officials including Chair Jerome Powell on Thursday expressed uncertainty on their battle against inflation and added that they would tighten policy further, if needed. The comments follow European Central Bank and Bank of England policymakers also recently pushing back against expectations around rate cuts . Traders pushed out bets on the Fed’s first rate cut to June of next year, from May earlier. The euro was last 0.08% higher at $1.0684, but not far from Monday's near two-month peak of $1.0765. Immediate resistance can be seen at 1.0690(Dailyu high), an upside break can trigger rise towards 1.0711(23.6%fib).On the downside, immediate support is seen at 1.0664 (38.2%fib), a break below could take the pair towards 1.0648(11DMA).
GBP/USD:The pound weakened against the dollar on Friday as markets digested data showing Britain’s economy failed to grow in the third quarter, though this was slightly above expectations. Numbers showed a 0% change in gross domestic product in the July-September period compared with a forecast for a 0.1% fall in a poll of economists, which many analysts said would likely represent the start of a recession. Markets are currently pricing in around 40 basis points of Bank of England rate cuts by September, less than for the U.S. Federal Reserve or the European Central Bank. Immediate resistance can be seen at 1.2271(50DMA), an upside break can trigger rise towards 1.2296(38.2%fib).On the downside, immediate support is seen at 1.2180 (23.6%fib), a break below could take the pair towards 1.2138(Nov 2nd low).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Friday as investors assed possibility of further interest rate hikes by U.S. central bank. Markets had earlier expected the Fed to signal that rate cuts were in the offing, based on underlying strength in U.S. Treasuries and the U.S. central bank standing pat on rates. However, Fed officials, including Chair Jerome Powell, said on Thursday they weren't sure interest rates were high enough to tame inflation. The loonie was trading 0.1% lower at C$1.3788 to the greenback , after trading in a range of 1.3792 to 1.3823. .Immediate resistance can be seen at 1.3820 (Nov 8th high), an upside break can trigger rise towards 1.3862 (23.6%fib).On the downside, immediate support is seen at 1.3775(38.2%fib), a break below could take the pair towards 1.3751 (21DMA).
USD/JPY: The dollar strengthened against yen on Friday after Federal Reserve Chair Jerome Powell and a chorus of other officials stressed that the central bank may have to hike rates again.A slew of Fed policymakers including Powell said on Thursday they are still not sure that interest rates are high enough to finish the battle with inflation. Investors saw the comments as hawkish, pushing bond yields and the dollar higher. The dollar stood near a one-year high at 151.43 yen on Friday. It was on track for a weekly gain of 1.39% against the yen, its biggest increase since August. Strong resistance can be seen at 151.66(Daily high),an upside break can trigger rise towards 152.07(23.6%fib).On the downside, immediate support is seen 151.18(38.2%fib)a break below could take the pair towards 150.43 (50%fib).
Equities Recap
European shares fell on Friday, hurt by higher bond yields, as hawkish comments from the U.S. Federal Reserve Chair poured cold water on investor optimism around a peak in interest rates.
UK's benchmark FTSE 100 closed down by 1.28 percent, Germany's Dax ended down by 0.77 percent, France’s CAC finished the day down by 0.96 percent.
Wall Street's main indexes ended with big gains on Friday, boosted by heavyweight tech and growth stocks as Treasury yields calmed, while investors looked ahead to a next week's reports on inflation and other economic data.
Dow Jones closed up by 1.15 %percent, S&P 500 closed up by 1.56% percent, Nasdaq settled down by 2.05 % percent.
Treasuries Recap
The yield on the benchmark 10-year Treasury note was little changed at 4.62% the day after a jump that was partly driven by a weaker-than-expected 30-year bond auction.
Commodities Recap
Oil prices gained about 2% on Friday as Iraq voiced support for OPEC+'s oil cuts ahead of a meeting in two weeks and as some speculators covered massive short positions ahead of weekend uncertainty.Still, prices settled with weekly losses of 4%, their third straight weekly decline.
Brent futures rose $1.42, or 1.8%, to settle at $81.43 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.43, or 1.9%, to settle at $77.17.
Gold fell on Friday and was bound for a second straight weekly drop on cooling safe-haven demand and hawkish cues from Federal Reserve Chair Jerome Powell.
Spot gold was 0.7% lower at $1,944.10 per ounce by 1312 GMT after hitting its lowest since Oct. 18. U.S. gold futures fell 1% to $1,950.00.
