Market Roundup
•Brazil Oct Foreign direct investment (USD) 5.54B, 6.50B forecast,9.19B previous
•Brazil Oct Current Account (USD) -4.63B,-4.90Bforecast,-5.68B previous
•Canada Sep Budget Balance (YoY) 3.88B, 16:00 previous
•Canada Sep Budget Balance -2.45B, 17:00 previous
Looking Ahead Economic Data(GMT)
•No data ahead
Looking Ahead - Events, Other Releases (GMT)
•No significant event
Currency Summaries
EUR/USD: The euro was set for weekly gains against dollar on Friday after GfK institute survey brought some relief, that German consumer sentiment is expected to stabilise next month with the help of energy measures. German consumer sentiment is set to barely change in December as government energy measures help stabilize morale at a level that is just above a record low set two months earlier and still signals declining consumption, a GfK institute survey showed on Friday.The institute said its consumer sentiment index rose to negative 40.2 heading into December from a reading of negative 41.9 in November. Immediate resistance can be seen at 1.0436(23.6%fib), an upside break can trigger rise towards 1.0484(Nov 15th high).On the downside, immediate support is seen at 1.0351(9DMA), a break below could take the pair towards 1.0265(38.2%fib).
GBP/USD: Sterling was slightly lower on Friday but still set for its third consecutive weekly gain against a weakening U.S. dollar.Analysts expect the pound to remain vulnerable as central banks, including the Bank of England (BoE), will tighten their monetary policy even into a recession, which is expected to be deeper in Britain than in the U.S. Expectations for rate hikes, which usually boost a currency's value, might harm the pound by dampening the country's economic outlook. The pound was down 0.2% against the dollar at $1.2082. It hit $1.2153, the highest level since August 12, on Thursday. Immediate resistance can be seen at 1.2148( 23.6%fib), an upside break can trigger rise towards 1.2225 (Higher BBb).On the downside, immediate support is seen at 1.2009 (5DMA), a break below could take the pair towards 1.1905 (38.2%fib).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Friday, giving back its weekly gain, as oil prices fell and the greenback gained ground against a basket of major currencies. The price of oil, one of Canada’s major exports, settled 2.1% lower at $76.28 a barrel, closing a week marked by worries about Chinese demand and haggling over a Western price cap on Russian oil. The U.S. dollar rose but remained near multi-month lows as investors weighed prospects of the Federal Reserve moderating the pace of its policy tightening . The loonie was last trading 0.3% lower at 1.3380 to the greenback .Immediate resistance can be seen at 1.3368 (14DMA), an upside break can trigger rise towards 1.3455 (38.2% fib).On the downside, immediate support is seen at 1.3324(23.6% fib), a break below could take the pair towards 1.3231 (Nov 16th low).
USD/JPY: The dollar strengthened against Japanese yen on Friday as the U.S. dollar regained some ground, but expectations of less aggressive interest rate hikes from the Federal Reserve kept gains in check. The U.S. Federal Reserve has raised interest rates aggressively throughout this year, but a substantial majority of Fed policymakers agreed it would likely soon be appropriate to slow the pace of interest rate rises, minutes of their latest meeting showed on Wednesday. Expectations that the peak in rates is approaching were raised earlier this month when U.S. October inflation data came in cooler than expected. The Japanese yen slipped 0.5% on the day to 139.14 to the dollar. Strong resistance can be seen at 140.18 (5DMA), an upside break can trigger rise towards 140.73(38.2%fib).On the downside, immediate support is seen at 138.28 (23.6% fib), a break below could take the pair towards 138.00(Psychological level).
Equities Recap
European stocks ended slightly on higher note on Friday with investors continuing to react to the minutes from the monetary policy meetings of the Federal Reserve and the European Central Bank, in addition to digesting the latest batch of economic data.
UK's benchmark FTSE 100 closed up by 0.25 percent, Germany's Dax ended up by 0.01 percent, France’s CAC finished the day up by 0. 08 percent.
The Nasdaq closed lower on Friday with pressure from Apple Inc in a subdued holiday-shortened trading session for Wall Street, as investors watched Black Friday sales and COVID-19 cases in China.
Dow Jones closed up by 0.45 percent, S&P 500 ended down by 0.03 percent, Nasdaq finished the day down by 0.52 percent.
Commodities Recap
Gold prices were steady below a one-week high hit on Friday as the U.S. dollar firmed, but the non-yielding metal looked set to eke out only a small weekly gain on expectations the U.S. Federal Reserve would scale back its rate-hiking stance.
Spot gold was little changed at $1,754.94 per ounce by 2:00 p.m. ET (1900 GMT). Prices hit a session high of 1,761.17 an ounce earlier and eyed a 0.3% rise for the week.U.S. gold futures settled up 0.5% at $1,754.
Oil prices fell 2% on Friday in thin market liquidity, closing a week marked by worries about Chinese demand and haggling over a Western price cap on Russian oil.
Brent crude futures settled down $1.71, or 2%, to trade at $83.63 a barrel, having retraced some earlier gains.
U.S. West Texas Intermediate (WTI) crude futures were down $1.66, or 2.1%, at $76.28 a barrel.
