Market Roundup
•US Retail sales rise 1.2% in July vs 7.5% gain in June
•US Jul Retail Control (MoM) 1.4%,0.8% forecast, 5.6% previous
•US Jul Core Retail Sales (MoM) 1.9%,1.3% forecast, 7.3% previous
•US Jul Retail Sales (MoM) 1.2%,1.9% forecast, 7.5% previous
•US Jul Retail Sales Ex Gas/Autos (MoM) 1.5%,6.7% previous
•US Unit Labor Costs (QoQ) (Q2) 12.2%,6.2% forecast, 5.1% previous
•US Nonfarm Productivity (QoQ) (Q2) 7.3%,1.5% forecast, -0.9% previous
•US Jul Retail Sales (YoY) 2.74% , 1.10% previous
•Canada Jun Manufacturing Sales (MoM) 20.7%,16.4% forecast, 10.7% previous
•US Jul Industrial Production (YoY) -8.18%,-10.82% previous
•US Jul Manufacturing Production (MoM) 3.4%,3.0% forecast, 7.2% previous
•US Jul Capacity Utilization Rate 70.6%, 70.3% forecast, 68.6% previous
•US Jul Industrial Production (MoM) 3.0%, 3.0%forecast, 5.4% previous
•US Aug Michigan 5-Year Inflation Expectations 2.70% , 2.60% previous
•US Aug Michigan Inflation Expectations 3.0%, 3.0% previous
• US Aug Michigan Consumer Sentiment 72.8, 72.0 forecast, 72.5 previous
•US Aug Michigan Consumer Expectations 66.5, 66.7 forecast, 65.9 previous
•US Aug Michigan Current Conditions 82.5, 81.8 forecast, 82.8 previous
•US Jun Retail Inventories Ex Auto -0.8%,-0.8% previous
•US Jun Business Inventories (MoM) -1.1%,-1.2% forecast, -2.3 previous
Looking Ahead – Economic Data (GMT)
• No data ahead
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Currencies Summaries
EUR/USD: The euro strengthened against dollar on Friday as investors looked to euro as eurozone economy is outperforming that of the United States in terms of managing the coronavirus pandemic. The delay in the passage of additional U.S. stimulus for virus relief did not help the dollar’s cause as well. The United States has 5.01 million confirmed coronavirus cases and more than 160,000 deaths, more than any country. The dollar was unmoved after data showing a 1.2% rise in the U.S. retail sales’ headline number in July, which was lower than expected, but a higher than forecast gain of 1.9%, excluding autos. Immediate resistance can be seen at 1.1864 (Aug 13th high), an upside break can trigger rise towards 1.1929 (23.6%fib).On the downside, immediate support is seen at 1.1777 (5DMA), a break below could take the pair towards 1.1700 (50% fib).
GBP/USD: The pound rose on Friday as the dollar fell amid thin August trading, keeping most investors on the sidelines from making directional decisions on the British currency.Sterling inched up 0.3% at $1.3085. It has risen nearly 7% in the last three months against the U.S. dollar, almost exclusively on the back of the greenback weakening. The dollar gave back more of its power on Friday after U.S. retail sales in July increased less than expected. Immediate resistance can be seen at 1.3140 (Daily high), an upside break can trigger rise towards 1.3178 (23.6%fib).On the downside, immediate support is seen at 1.3044 (5 DMA), a break below could take the pair towards 1.2972 (38.2%fib).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Friday as investor caution about taking on more risk offset stronger-than-expected domestic manufacturing data, but the loonie held on to most of this week's rally. Canadian manufacturing sales rose by a record 20.7% in June as many factories operated at a much higher capacity than in May, Statistics Canada said. Analysts had forecast a gain of 16.4%.The loonie was trading 0.2% lower at 1.3243 to the greenback. For the week, the loonie was up 1.1%. Immediate resistance can be seen at 1.3272 (5DMA), an upside break can trigger rise towards 1.3365 (38.2%fib).On the downside, immediate support is seen at 1.3191 (23.6%fib), a break below could take the pair towards 1.3100 (Psychological level).
USD/JPY: The dollar dipped against the Japanese yen on Friday as worries about a delay in U.S. fiscal stimulus decreased demand for dollar. Investors await progress in negotiations over U.S. economic stimulus, which is necessary to prevent a nascent recovery in the world’s largest economy from sliding into reverse. Some traders stuck to the sidelines before a meeting between U.S. and Chinese officials about their Phase 1 trade deal on Saturday. The dollar was last down 0.4% versus the Japanese yen at 106.51. Strong resistance can be seen at 107.00 (Psychological level), an upside break can trigger rise towards 107.60 (38.2% fib).On the downside, immediate support is seen at 106.47 (5DMA), a break below could take the pair towards 105.11 (11DMA).
Equities Recap
European shares slid in thin summer trading on Friday as travel stocks took a hit after Britain added more countries from the continent to its quarantine list, while weak retail sales data from China raised doubts over the pace of an economic recovery.
UK's benchmark FTSE 100 closed down by 1.55% percent, Germany's Dax ended down by 0.71% percent, France’s CAC finished the day down by 1.58% percent.
The Dow Jones edged higher in choppy trading on Friday, as investors juggled between prospects of more fiscal stimulus and fears of further business disruptions due to another record-breaking rise in COVID-19 cases across the country.
Dow Jones was closed up by 0.12% percent, S&P 500 was down by 0.02% percent, Nasdaq was trading down by 0.21% percent.
Treasuries Recap
Benchmark U.S. Treasury yields dropped from seven-week highs on Friday but remained relatively elevated after the Treasury on Thursday completed $112 billion in record coupon-bearing supply that has put pressure on bonds all week.
Benchmark 10-year note yields fell two basis points to 0.701%, after reaching 0.727% on Thursday, the highest since June 24.
Commodities Recap
Gold prices rose for a third straight session on Friday, supported by a weaker U.S. dollar, with investors awaiting the release of Chinese economic data due later in the day.
Spot gold was up 0.4% at $1,960.29 per ounce by 0044 GMT. However, bullion has fallen nearly 4% so far this week and was on track for its first weekly decline since early June. U.S. gold futures eased 0.2% to $1,967.50 per ounce.
Oil prices edged lower on Friday on worries that demand would recover more slowly than expected from COVID-19 pandemic lockdowns, while rising supply also overshadowed optimism over falling crude and fuel inventories.
Brent crude settled at $44.80 a barrel, falling 16 cents. U.S. West Texas Intermediate settled at $42.01 a barrel, down 23 cents.For the week, Brent was up 0.9% and WTI gained 1.9%.
