Market Roundup
•UK Aug Retail Sales (YoY) 0.0%,2.7% forecast,2.4% previous
•UK Aug Core Retail Sales (YoY) -0.9%, 2.5% forecast, 1.8% previous
•UK Aug Core Retail Sales (MoM) -1.2%, 0.8% forecast, -2.4% previous
•UK Aug Retail Sales (MoM) -0.9%,0.5% forecast, -2.5% previous
•EU Aug CPI (MoM) 0.4%,0.4% forecast, -0.1% previous
•EU Aug CPI (YoY) 3.0%,3.0% forecast, 2.2% previous
•EU Aug Core CPI (YoY) 1.6%, 1.6% forecast, 1.6% previous
Looking Ahead –Economic Data (GMT)
•14:00 US Sep Michigan Current Conditions 78.5 previous
•14:00 US Sep Michigan Consumer Expectations 65.1 previous
•14:00 US Sep Michigan Consumer Sentiment 72.0 forecast, 70.3 previous
•14:00 US Sep Michigan 5-Year Inflation Expectations 2.90% previous
•14:00 US Sep Michigan Inflation Expectations 4.6% previous
•14:00 U.S Baker Hughes Total Rig Count 497 previous
•14:00 U.S Baker Hughes Oil Rig Count 394 previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Fxbeat
EUR/USD: The euro strengthened against dollar on Friday but gains were limited as markets were generally quiet on Friday and traders were reluctant to put on new big positions ahead of a clutch of important central bank meetings next week including from the Fed, the Bank of Japan and the Bank of England. In the United States, the Federal Open Market Committee's (FOMC) two-day policy meeting ending Sept. 22 should provide some clarity on the outlook for both tapering and eventual interest rate hikes.The euro was up 0.11% at $1.1778.Immediate resistance can be seen at 1.1785 (38.2%fib), an upside break can trigger rise towards 1.1817(23.6%fib).On the downside, immediate support is seen at 1.1759(50%fib), a break below could take the pair towards 1.1733 (61.8%fib).
GBP/USD: Sterling held below a recent one-month high versus the dollar on Friday as UK retail sales undershot expectations, while some investment banks brought forward their forecast for a Bank of England rate rise to the middle of 2022.British retail sales volumes unexpectedly fell last month in their longest streak of declines since current records began, though they remain above pre-pandemic levels. Sterling was flat at $1.3784 at 0745 GMT, not far from the one-week low of $1.3765 touched on Thursday. It hit an early August high of $1.3913 on Sept. 14. Immediate resistance can be seen at 1.3811(38.2%fib),an upside break can trigger rise towards 1.3873 (23.6%fib).On the downside, immediate support is seen at 1.3764(50%fib), a break below could take the pair towards 1.3714(61.8%fib).
USD/CHF: The dollar strengthened against the Swiss franc on Friday as better-than-expected retail sales numbers in the United States boosted bets on the strength of the U.S. economy . U.S. retail sales unexpectedly increased in August, rising 0.7% from the previous month despite expectations of a 0.8% fall, while a business sentiment survey by the Philadelphia Fed also showed a big improvement. The more bullish mood faces another test later today with the release of the University of Michigan's consumer sentiment index, which surprised many investors last month by tumbling to a decade-low due to smaller income gains and higher inflation. Immediate resistance can be seen at 0.9176 (38.2%fib), an upside break can trigger rise towards 0.9204 (Daily high).On the downside, immediate support is seen at 0.9161(21DMA), a break below could take the pair towards 0.9131(50%fib).
USD/JPY: The dollar strengthened against yen on Friday as strong U.S. retail sales data buoyed the dollar. Retail sales rose 0.7% last month. Data for July was revised down to show retail sales declining 1.8% instead of 1.1% as previously reported. Economists polled had forecast retail sales would drop 0.8%. Sales increased 15.1% from a year ago and are 17.7% above their pre-pandemic level. The dollar rose to 109.84 yen, having gained 0.34% on Thursday to rise off Wednesday’s six-week low of 109.11.Strong resistance can be seen at 109.18(38.2%fib), an upside break can trigger rise towards 109.70(23.6%fib).On the downside, immediate support is seen at 109.15(50%fib), a break below could take the pair towards 108.84(61.8%fib).
Equities Recap
European stocks were on track for weekly gains on Friday as news that Britain was mulling easing travel restrictions boosted airlines and hotel groups, while a rebound in luxury stocks also supported the main indexes.
At (GMT 09:58),UK's benchmark FTSE 100 was last trading down at 0.10% percent, Germany's Dax was down by 0.15 %percent, France’s CAC was last down by 0.02% percent.
Commodities Recap
Gold regained some ground on Friday after a drop of nearly 3% in the last session, but a firm dollar kept bullion on course for a weekly decline with the focus still on an upcoming U.S. Federal Reserve meeting.
Spot gold rose 0.7% to $1,765.73 per ounce by 0925 GMT, while U.S. gold futures gained 0.6% to $1,766.30.
Brent oil futures dipped on Friday but held above $75 a barrel, remaining on track for weekly gains of more than 3% thanks to the slow recovery in output after two hurricanes in the U.S. Gulf of Mexico.
Brent crude futures fell 27 cents, or 0.36%, to $75.40 a barrel by 0838 GMT, erasing Thursday's 21 cent gain.
U.S. West Texas Intermediate (WTI) crude futures were down 39 cents, or 0.54%, at $72.22 after settling unchanged in the previous session.
