Market Roundup
•Swiss July PPI (YoY) -3.3%,-3.5% previous
•Swiss July PPI (MoM) 0.1% , 0.5% previous
•French July CPI (MoM) 0.4% , 0.4% forecast, 0.1% previous
•French July HICP (YoY) 0.9%, 0.9% forecast, 0.9% previous
•French July HICP (MoM) 0.4%, 0.4% forecast, 0.4% previous
•French CPI (YoY) 0.8%,0.8% forecast, 0.8% previous
•EU GDP (QoQ) (Q2) -12.1%, -12.1% forecast, -12.1% previous
•EU GDP (YoY) (Q2) -15.0%,-15.0% forecast, -15.0% previous
•EU Employment Overall (Q2) 155,894.7K, 160,439.0K previous
•EU June Trade Balance 21.2B, 12.6B forecast, 9.4B previous
•EU Employment Change (QoQ) -2.8%,-0.2% previous
•EU Employment Change (YoY) -2.9%,0.4% previous
•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
Fxbeat
EUR/USD: The euro strengthened against dollar on Friday as upbeat Euro zone trade surplus boosted euro shrugging off dismal second-quarter GDP data. The euro zone’s trade surplus with the rest of the world ballooned in June to 21.2 billion euros ($25 billion) as the bloc’s drop in imports of goods outpaced the fall of exports amid a global slide in trade due to the COVID-19 pandemic.The agency confirmed the record drop in the bloc’s gross domestic product last quarter, which fell by 12.1% compared with the first three months of the year. 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 was steady against dollar on Friday as thin August trading kept investors on the sidelines. Sterling was up at $1.3107 against the dollar. It has risen nearly 7% in the last three months against the U.S. dollar, almost exclusively on the back of the greenback weakening. Next week, Britain releases inflation data on Wednesday and retail sales on Friday, with both expected to be lower. The UK can ill afford another coronavirus-induced slump after posting a 20% drop in second-quarter GDP. In October it is due to end a furlough scheme that has allowed millions to retain their jobs. 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/CHF: The dollar dipped against the Swiss franc on Friday as U.S. retail sales missed expectations in July. U.S. retail sales in July increased less than expected as consumers cut back on purchases of motor vehicles and could slow further in the months ahead amid spiraling new COVID-19 infections and a reduction in unemployment benefit checks. Retail sales rose 1.2% last month after advancing 8.4% in June. Economists had forecast retail sales would rise 1.9% in July. Immediate resistance can be seen at 0.9125 (38.2%fib), an upside break can trigger rise towards 0.9181 (50% fib).On the downside, immediate support is seen at 0.9049 (23.6% fib), a break below could take the pair towards 0.9000 (Psychological level).
USD/JPY: The dollar dipped against the Japanese yen on Friday as less than expected U.S. retail sales data weighed on greenback. Retail sales rose 1.2% last month after advancing 8.4% in June. The slowdown in retail sales in July was led by a 1.2% decline in receipts at auto dealerships. That followed a 6.1% acceleration in June. Consumers also cut back spending at hobby, musical instrument and book stores as well as at building materials outlets. But they boosted purchases at electronics and appliance stores, which soared 22.9%, likely reflecting strong demand as many Americans work from home. 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.
At (GMT 12:23),UK's benchmark FTSE 100 was last trading down at 1.65 percent, Germany's Dax was down by 0.91 percent, France’s CAC was last down by 1.57 percent.
Commodities Recap
Gold fell on Friday as a rally in U.S. treasuries and a steady dollar prompted a sell-off in bullion, setting it up for its biggest weekly decline since March following a steep retreat from record peak.
Spot gold dipped 0.3% to $1,947.67 per ounce by 1159 GMT. U.S. gold futures fell 0.7% to $1,956.50 per ounce.
Oil edged further below $45 a barrel on Friday, giving up much of this week’s gain, under pressure from doubts about demand recovery due to the COVID-19 pandemic and rising supply.
Brent crude was 17 cents, or 0.4%, lower at $44.79 by 1345 GMT, but still heading for a rise of 0.3% this week. U.S. West Texas Intermediate was down 19 cents, or 0.5%, at $42.05.
