Market Roundup
•Canada Labor Productivity (QoQ) (Q4) -0.5%,0.6% previous
•Canada Jan Building Permits (MoM) -4.0%, 1.5% forecast,-7.3% previous
•US Feb Services PMI 50.6, 50.5 forecast,46.8 previous
•US Feb S&P Global Composite PMI 50.1 ,50.2 forecast,46.8 previous
•US Feb ISM Non-Manufacturing PMI 55.1, 54.5 forecast,55.2 previous
•US Feb ISM Non-Manufacturing Business Activity 56.3, 60.4 previous
•US Feb ISM Non-Manufacturing New Orders 62.6 ,60.4 previous
•US Feb ISM Non-Manufacturing Prices 65.6, 67.8 previous
•US Feb ISM Non-Manufacturing Employment 54.0, 50.0 previous
• U.S. Baker Hughes Total Rig Count 749, 753 previous
•U.S. Baker Hughes Oil Rig Count 592 ,600 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 against the dollar on Friday after data showed German exports rose more than expected in January. German exports i increased 2.1% on the month to bounce back from the prior month's slump thanks to strong demand from the United States and Britain, data showed on Friday. The foreign trade balance showed a surplus of 16.7 billion euros ($17.73 billion) in January. Meanwhile, the ECB continued to sound hawkish, with Governing Council member Pierre Wunsch saying the central bank could raise its key interest rate as high as 4% if underlying inflation remains high. The euro rose 0.3% to $1.0628, after starting the week at a nearly two-month low of $1.0533. Immediate resistance can be seen at 1.0634 (11DMA), an upside break can trigger rise towards 1.07779 (23.6%fib).On the downside, immediate support is seen at 1.0559 (38.2%fib), a break below could take the pair towards 1.0537(Lower BB).
GBP/USD: The pound rose on Friday, boosted by data that showed business activity expanded at its fastest pace in eight months in February, which added to the view among investors that UK rates will continue to rise beyond March.The final version of the S&P Global/CIPS UK services Purchasing Managers’ Index (PMI) increased to 53.5 last month, up from 48.7 in January, the strongest rate of growth since June last year. Any reading above 50 represents an expansion. Immediate resistance can be seen at 1.2032(14DMA), an upside break can trigger rise towards 1.2123(23.6%fib).On the downside, immediate support is seen at 1.1941(38.2%fib), a break below could take the pair towards 1.1903(Lower BB).
USD/CAD: The Canadian dollar rebounded to edge higher against its U.S. counterpart on Friday as improved investor sentiment offset further widening in yield spreads between U.S. and Canadian bonds. Canada’s 2-year yield fell 3.4 basis points further below its U.S. equivalent to a gap of about 63 basis points, near its widest since May 2019, as investors bet that the Bank of Canada would pause its interest rate hiking campaign at a policy-making meeting next Wednesday. The loonie traded 0.1% higher at 1.3585 to the greenback, or 73.61 U.S. cents, after moving in a range of 1.3556 to 1.3644. Immediate resistance can be seen at 1.3629 (38.2% fib), an upside break can trigger rise towards 1.3665 (Feb 24th high).On the downside, immediate support is seen at 1.3557(50% fib), a break below could take the pair towards 1.3524 (14DMA).
USD/JPY: The dollar dipped against yen on Friday as traders tried to gauge the path for Federal Reserve policy. The yen, which is sensitive to U.S.-Japan long-term rate differentials, halted its six-week losing streak against the dollar, as it gained strength with 10-year U.S. yields retreating from a nearly four-month high close to 4.1%. The dollar eased 0.4% to 136.26 yen , after climbing to 137.10 on Thursday, the highest since Dec. 20. For the week, the dollar was down 0.4% versus the yen, its worst weekly showing since mid-January. Strong resistance can be seen at 137.54(38.2%fib), an upside break can trigger rise towards 138.00(Psychological level).On the downside, immediate support is seen at 135.59 (50%fib), a break below could take the pair towards 135.10 (14DMA).
Equities Recap
European shares rose on Friday as hopes the U.S. Federal Reserve could adopt a measured approach to rate hikes lifted the technology sector, while miners extended their rally on growing bets for a demand recovery in China.
UK's benchmark FTSE 100 closed up by 0.04 percent, Germany's Dax ended up by 1.64 percent, France’s CAC finished the day up by 0. 88 percent.
Wall Street stocks posted strong gains while Treasury yields and the dollar pulled back on Friday as data pointing to U.S. economic growth boosted risk appetite, even as expectations for rate hikes kept bond yields near multi-year highs.
Dow Jones closed up by 1.17 percent, S&P 500 ended up by 1.61 percent, Nasdaq finished the day up by 1.97 percent.
Treasuries Recap
U.S. Treasury yields paused their rally. The U.S. 10-year Treasury yield fell to 3.967%, down from Thursday's high of 4.091%. The two-year Treasury yield, which typically moves in step with interest rate expectations, dipped 3.9 basis points at 4.865%.
Commodities Recap
Gold prices climbed to a two-week high on Friday and were heading for their first weekly rise in five as a pullback in the U.S. dollar and Treasury yields offered some respite from prospects of more rate hikes from the Federal Reserve.
Spot gold was up 0.8% at $1,850 per ounce by 02:28 p.m. ET (1928 GMT), its highest since Feb. 15. Prices have risen about 2.2% so far this week.U.S. gold futures settled 0.8% higher at $1,854.60.
Oil prices recovered from a brief sell-off to gain by more $1 per barrel on Friday and ended the week higher, driven by renewed optimism around demand from top oil importer China.
Brent crude futures rose $1.08, or 1.3%, to settle at $85.83 a barrel. U.S. West Texas Intermediate (WTI) crude futures settled at $79.68 a barrel, up by $1.52, or 1.9%. Both benchmarks posted their highest closing levels since Feb. 13.
