Market Roundup
•Fed's Logan says policy may not be tight enough
•Canada Apr Participation Rate 65.4% ,65.3% previous
•Canada Apr Unemployment Rate 6.1%, 6.2% forecast,6.1% previous
•Canada Apr Part Time Employment Change 50.3K, -1.6K previous
•Canada Apr Full Employment Change 40.1K, -0.7K previous
•Canada Apr Employment Change 90.4K,20.9K forecast,-2.2K previous
• Canada Apr Avg hourly wages Permanent employee 4.8%, 5.0% previous
•US May Michigan 1-Year Inflation Expectations 3.5%, 3.2% previous
•US May Michigan 5-Year Inflation Expectations 3.1%, 3.0% previous
•US May Michigan Consumer Sentiment 67.4, 76.0 forecast,77.2 previous
•US Michigan Consumer Expectations 66.5, 76.0 previous
•US May Michigan Current Conditions 68.8, 79.0 previous
•U.S. Baker Hughes Oil Rig Count 496, 499 previous
•U.S. U.S. Baker Hughes Total Rig Count 603, 605 previous
Looking Ahead Economic Data(GMT)
•08:00 China New Loans 1,200.0B forecast, 3,090.0B previous
•08:00 China M2 Money Stock (YoY) 8.3% forecast, 8.3% previous
•08:00 China Outstanding Loan Growth (YoY) 9.6% previous
•08:00 China Chinese Total Social Financing 4,870.0B previous
Looking Ahead - Events, Other Releases (GMT)
• No Events Ahead
Currency Summaries
EUR/USD: The euro eased on Friday as dollar gained following a reading on U.S. consumer sentiment as investors sorted through a batch of comments from Federal Reserve officials, with the focus beginning to turn toward key inflation readings next week. Greenback reversed its losses and edged slightly upwards following the release of the University of Michigan's preliminary reading on consumer sentiment for May, which came in at 67.4. The dollar index , which measures the greenback against a basket of currencies, gained 0.09% to 105.31, with the euro down 0.08% at $1.0772. Immediate resistance can be seen at 1.0810(23.6% fib), an upside break can trigger rise towards 1.0826(Higher BB).On the downside, immediate support is seen at 1.0732 (38.2% fib), a break below could take the pair towards 1.0671(50% fib).
GBP/USD: The pound rose on Friday after data showed the British economy beat expectations in the first quarter of the year, growing 0.6% and leaving behind 2023's mild recession. The Office for National Statistics data showed that Britain's economic output grew by a stronger-than-expected 0.6% in the January-to-March period, compared with the previous quarter. A poll of economists had pointed to a 0.4% expansion. The Bank of England on Thursday held interest rates at a 16-year high of 5.25% but noted that inflation was moving in the right direction, while a deputy governor voted for a rate cut, both signs that borrowing costs could well start to fall in the second or third quarters. Immediate resistance can be seen at 1.2540 (38.2%fib), an upside break can trigger rise towards 1.2597(23.6 % fib).On the downside, immediate support is seen at 1.2486 (50% fib), a break below could take the pair towards 1.2445 ( 61.8% fib).
USD/CAD: The Canadian dollar stabilized against the broadly stronger U.S. counterpart, maintaining a modest weekly gain after data showed larger-than-expected increase in domestic jobs, which tempered expectations for interest rate cuts by the Bank of Canada. In April, Canada's economy saw a significant addition of 90,400 jobs, which was five times more than forecasted. Surprisingly, the unemployment rate remained steady at 6.1%, defying expectations of an increase. Money markets see a 44% chance of a Bank of Canada interest rate cut at its next policy announcement on June 5, down from nearly 60% before the data. The loonie was trading nearly unchanged at 1.3675 to the U.S. dollar after trading in a range of 1.3636 to 1.3690. Immediate resistance can be seen at 1.3697(38.2% fib), an upside break can trigger rise towards 1.3750 (23.6% fib).On the downside, immediate support is seen at 1.3648(50% fib), a break below could take the pair towards 1.3650 (61.8% fib).
USD/JPY: The U.S. dollar strengthened against yen on Friday as greenback pared initial declines and turned modestly higher as investors assessed a reading on U.S. consumer sentiment and sifted through a flurry of comments from Fed officials. The University of Michigan's preliminary reading of consumer sentiment for May came in at 67.4, marking a six-month low and falling below economists' expectations of 76.0. Additionally, the one-year inflation expectation rose to 3.5% from 3.2%. Markets await both next week's producer price index and the consumer price index for signs that U.S. inflation has resumed its downward trend toward the Fed's 2% target rate. Strong resistance can be seen at 156.29 (23.6%fib), an upside break can trigger rise towards 157.00(Psychological level).On the downside, immediate support is seen at 154.38(38.2% fib), a break below could take the pair towards 152.86(50% fib).
Equities Recap
A rally in global equity markets lifted stocks in Europe to record highs on Friday amid strong corporate earnings and hopes central bank interest rate cuts are near.
UK's benchmark FTSE 100 closed up by 0.63 percent, Germany's Dax ended up by 0.38 percent, France’s CAC finished the day up by 0.38 percent.
U.S. stocks managed to secure modest gains, contributing to another weekly advance for all three indexes as investors closely analyzed statements from Federal Reserve officials and anticipated crucial inflation data scheduled for release next week.
Dow Jones closed up by 0.32% percent, S&P 500 closed up by 0.16% percent, Nasdaq settled up by 0.03 % percent.
Commodities Recap
Gold prices surged on Friday as momentum was driven by zero-yield bullion, which continued to gain traction following weaker U.S. jobs data earlier in the week which solidified expectations for an interest rate cut by the Federal Reserve.
Spot gold rose 1% to $2,369.49 per ounce by 2:02 p.m. ET (1802 GMT).U.S. gold futures for June delivery settled 1.5% higher to $2,375.00 per ounce.
Oil prices fell by nearly $1 a barrel on Friday as comments from U.S. central bank officials indicated higher-for-longer interest rates, which could hinder demand from the world's largest crude consumers.
Brent crude futures settled at $82.79 a barrel, down $1.09, or 1.3%. U.S. West Texas Intermediate crude settled at $78.26 a barrel, down $1.00, or 1.3%.
