Market Roundup
• French GDP (QoQ) (Q4) 0.7%, 0.5% forecast,3.0% previous
• French Dec Consumer Spending (MoM) 0.2%,0.2% forecast,08 previous
• French GDP (YoY) 5.4%,3.3% previous
• Sweden GDP (QoQ) (Q4) 1.4%, 1.0% forecast, 2.0%previoius
• German GDP (QoQ) (Q4) -0.7%,-0.3% forecast, -0.7% previous
• German GDP (YoY) (Q4) 1.4%, 1.8% forecast, 1.4% previous
• EU Jan Business and Consumer Survey 112.7, 114.5 forecast, 113.8 previous
• EU Jan Industrial Sentiment 13.9, 15.0 forecast, 14.6 previous
Looking Ahead - Economic Data (GMT)
• 13:30 US Employment Cost Index (QoQ) (Q4) 1.2%, forecast, 1.3% previous
• 13:30 US Employment Wages (QoQ) (Q4) 1.50% previous
• 13:30 US Dec Personal Income (MoM) 0.5% forecast ,0.4% previous
• 13:30 US Dec Personal Spending (MoM) -0.6% forecast, 0.6% previous
• 13:30 US Dec PCE Price index (YoY) 5.7 previous
• 13:30 US Dec Core PCE Price Index (MoM) 0.5% forecast, 0.5% previous
• 13:30 US Dec Core PCE Price Index (YoY) 4.8% forecast,4.7% previous
• 13:30 US Jan Michigan Consumer Sentiment 68.7, 70.6 previous
• 13:30 US Jan Michigan Consumer Expectations 65.8, 68.3 previous
• 18:00 US U.S. Baker Hughes Oil Rig Count 491 previous
• 18:00 US U.S. Baker Hughes Total Rig Count 604 previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro declined against dollar on Friday as markets continued to digest the more hawkish than expected message that emerged from the U.S. Federal Reserve policy meeting earlier this week. In its latest policy update on Wednesday, the Fed indicated it was likely to raise U.S. interest rates in March, as widely expected, and reaffirmed plans to end its pandemic-era bond purchases that month before launching a significant reduction in its asset holdings. Investors were awaiting for the U.S. personal consumption expenditure price index figure the Fed's preferred inflation gauge later in the session. The euro nursed losses on Friday with the single currency trading down at 0.13 % at 1.1131. Immediate resistance can be seen at 1.1168(38.2%fib), an upside break can trigger rise towards 1.1205(50%fib).On the downside, immediate support is seen at 1.1129 (23.6%fib), a break below could take the pair towards 1.1100 (Psychological level).
GBP/USD: Sterling recovered from one- month low against dollar on Friday as investors expected that Bank of England will raise rates next week and follow a much faster path of monetary tightening than the European Central Bank in 2022.Analysts argued that the hawkish BoE stance would boost the pound, despite the tightening plans from the U.S. Federal Reserve, providing some defence also against the dollar. The pound was up 0,.01 percent against the greenback at $1.3375..Immediate resistance can be seen at 1.3427 (38.2%fib), an upside break can trigger rise towards 1.3449(23.6%fib).On the downside, immediate support is seen at 1.3369(50%fib), a break below could take the pair towards 1.3312(61.8%fib).
USD/CHF: The dollar dipped against the Swiss franc on Friday as investors brace for a year of aggressive rate hikes from the U.S. Federal Reserve. In its latest policy update on Wednesday, the Fed had indicated it was likely to raise rates in March, as widely expected, and reaffirmed plans to end its pandemic-era bond purchases that month before launching a significant reduction in its asset holdings. At 11:14 GMT, the dollar was 0.15 percent higher versus the Swiss franc at 0.9318. Immediate resistance can be seen at 0.9324 (23.6%fib), an upside break can trigger rise towards 0.9339(Jan 27th high).On the downside, immediate support is seen at 0.9269(38.2%fib), a break below could take the pair towards 0.9230(50%fib).
USD/JPY: The dollar rose against the Japanese yen on Friday as expectations of higher interest rates fuelled the U.S. unit's gains versus rivals. With money markets pricing 30 bps of rate hikes in March and more than 120 bps in cumulative increases before the end of the year, the dollar was in the limelight even as broader currency markets quietened somewhat after an eventful week in global markets punctuated by a hawkish Federal Reserve meeting. Strong resistance can be seen at 113.88(5DMA), an upside break can trigger rise towards 114.06 (23.6%fib).On the downside, immediate support is seen at 113.58 (50%fib), a break below could take the pair towards 113.27 (Lower BB).
Equities Recap
Europe's main bourses fell again on Friday as worries about a sudden stop to central bank stimulus and rising tensions between Western powers and Moscow continued to drive world stocks to one of their worst ever starts to a year.
At (GMT 11:20 ),UK's benchmark FTSE 100 was last trading lower at 1.37 percent, Germany's Dax was down by 2.08 percent, France’s CAC was last down by 1.78 percent.
Commodities Recap
Gold was flat on Friday and set for its sharpest weekly decline since November, as markets digested the U.S. Federal Reserve's policy tightening policy plan that led to a surge in dollar and Treasury yields.
Spot gold was flat at $1,796.20 per ounce by 0710 GMT. U.S. gold futures rose 0.1% to $1,797.10.
Oil prices rose on Friday, heading towards a sixth consecutive weekly gain, as geopolitical tensions continue to raise supply concerns.
Brent crude futures were up 63 cents, or 0.7%, at $89.97 a barrel by 1013 GMT, having hit $91.04 on Thursday for their highest since October 2014.
U.S. West Texas Intermediate (WTI) crude futures rose 49 cents, or 0.6%, to $87.10. WTI also reached a seven-year high of $88.54 earlier in the session.
