Market Roundup
•German Oct Import Price Index (MoM) 0.3%,0.3% previous
•German Oct Import Price Index (YoY) -3.9%, -4.1% forecast, -4.3% previous
•French GDP (QoQ) (Q3) 18.7%,18.2% forecast, 13.7% previous
•French HICP (YoY) 0.2%,0.1% forecast, 0.1% previous
•French HICP (MoM) 0.2%,0.1% forecast, 0.0% previous
•French CPI (YoY) 0.2%,0.1% forecast, 0.0% previous
•French CPI (MoM) 0.2%,0.0% forecast, 0.0% previous
•French Oct PPI (MoM) 0.1%,0.2% previous
•French Oct Consumer Spending (MoM) 3.7%,2.9% forecast, -5.1% previous
•Spanish Oct Retail Sales (YoY) -2.7%,-3.3% previous
•Italian Nov Consumer Confidence 98.1, 99.0 forecast, 102.0 previous
•Italian Nov Business Confidence 90.2, 93.5 forecast, 95.6 previous
•Belgium Nov CPI (MoM) -0.16%,0.20% previous
•Belgium Nov CPI (YoY) 0.51%, 0.74% previous
•Italian Oct PPI (MoM) 0.6%,0.1% previous
•Italian Oct PPI (YoY) -2.5%,-3.1% previous
•EU Nov Industrial Sentiment -10.1, -10.5 forecast, -9.6 previous
• EU Nov Services Sentiment -17.3, -15.5 forecast, -11.8 previous
• EU Selling Price Expectations 0.2, 0.6 previous
• EU Nov Consumer Confidence -17.6, -17.6 forecast, -15.5 previous
• EU Nov Business Climate -0.63, -0.74 previous
• EU Nov Business and Consumer Survey 87.6, 86.5 forecast, 90.9 previous
• Irish Oct Retail Sales (MoM) -0.7%,1.5% previous
• Irish Oct Retail Sales (YoY) 8.1%,9.7% previous
Looking Ahead - Economic Data (GMT)
•13:30 Brazil Oct Bank lending (MoM) 1.9% previous
•16:00 Canada Sep Budget Balance (YoY) -170.52B previous
•16:00 Canada Budget Balance -21.94B previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro was little chanded on Friday amid expectations for further monetary stimulus from the European Central Bank. The ECB’s chief economist Philip Lane warned on Thursday that tolerating “a longer phase of even lower inflation” would hurt consumption and investment as well as cementing expectations for low price growth in the future.The ECB released minutes of its October meeting shortly after, which showed policymakers agreeing they could not afford to seem complacent during the second wave of the coronavirus, opting instead to promise more stimulus.Market reaction was relatively muted given the ECB had already committed to providing more stimulus in December at the October meeting. Immediate resistance can be seen at 1.1935(38.2%fib), an upside break can trigger rise towards 1.1958 (23.6%fib).On the downside, immediate support is seen at 1.1917 (50%fib), a break below could take the pair towards 1.1897 (61.8% fib).
GBP/USD: Sterling edged down on Friday but remains near a three-month high, brushing off fresh talk of a Scottish independence referendum that could wrench apart the United Kingdom after Brexit. Scottish leader Nicola Sturgeon said the independence vote should take place in the earlier part of the devolved parliament’s next term, which begins next year.Scots voted 55-45% against independence in a 2014 referendum but both Brexit and the British government’s handling of the COVID-19 crisis have boosted support for independence among Scots. The pound nudged down 0.26% against the dollar to $1.3325, and likewise slipped against the euro to 89.465 pence. Immediate resistance can be seen at 1.3398 (23.6%fib), an upside break can trigger rise towards 1.3487 (Aug 24th high).On the downside, immediate support is seen at 1.3310 (38.2%fib), a break below could take the pair towards 1.3264 (23rd Nov low).
USD/CHF: The dollar gained against the Swiss franc on Friday COVID-19 vaccine optimism and prospects for an easier transition to a Biden administration diluted demand for safe haven swiss franc. With currency markets generally subdued due to the absence of U.S. investors for the Thanksgiving weekend investors avoided taking new positions. At 13:00 GMT, the dollar was 0.16 percent higher versus the Swiss franc at 0.9074 . Immediate resistance can be seen at 0.9081 (Daily high), an upside break can trigger rise towards 0.9098 (38.2% fib).On the downside, immediate support is seen at 0.905323.6% fib), a break below could take the pair towards 0.9022 (Lower BB).
USD/JPY: The dollar declined against the Japanese yen on Friday as doubts about AstraZeneca’s COVID-19 vaccine increased demand for safe haven yen. The dollar has fallen more than 2.2% so far this month as global market sentiment has surged on Joe Biden’s U.S. election victory and news of progress in the development of COVID-19 vaccines, lessening demand for the safe-haven currency. But sentiment became more mixed after several scientists raised doubts about the success rate for the vaccine developed by British drugmaker AstraZeneca. Dollar-yen was down 0.2% at 104.21 at 12:30 GMT. Strong resistance can be seen at 104.34 (38.2% fib), an upside break can trigger rise towards 104.48(330DMA).On the downside, immediate support is seen at 103.86 (23.6%fib), a break below could take the pair towards 103.61 (18 Nov low).
Equities Recap
European shares edged higher on Friday as Spanish lender BBVA gained after ending merger talks with Banco Sabadell, while doubts about the effectiveness of AstraZeneca’s COVID-19 vaccine kept sentiment subdued.
At (GMT 13:30 ),UK's benchmark FTSE 100 was last trading down at 0.56 percent, Germany's Dax was up by 0.12 percent, France’s CAC was last up by 0.52 percent.
Commodities Recap
Gold edged down on Friday, on path for its worst weekly decline in two months, as hopes for a virus vaccine and a rebound in economic growth dulled demand for the safe-haven asset.
Spot gold fell 0.1% to $1,808.30 per ounce by 1054 GMT, down 3.4% on the week so far, it’s biggest weekly loss since Sept. 25.U.S. gold futures were little changed at $1,806.40.
Oil prices were mixed on Friday but remained on course for a fourth straight week of gains ahead of an OPEC+ meeting early next week.
Brent crude for January rose 35 cents, or 0.7%, to $48.15 a barrel by 1321 GMT and the more active February contract gained 42 cents to $48.21.West Texas Intermediate, meanwhile, was down 28 cents, or 0.6%, at $45.43.
