Market Roundup
•UK Dec Retail Sales (YoY) -5.8%,-4.1% forecast,-5.9% previous
•UK Dec Core Retail Sales (YoY) -6.1%,-4.4% forecast,-5.9% previous
•UK Dec Core Retail Sales (MoM) -1.1%, 0.4% forecast,-0.3% previous
•German Dec PPI (YoY) 21.6%,20.8% forecast,28.2% previous
•German Dec PPI (MoM) -0.4%, -1.2% forecast,-3.9% previous
•UK Dec Retail Sales (MoM) -1.0%,0.5% forecast,-0.4% previous
•Greek Nov Current Account (YoY) -3.929B,-2.704B previous
Looking Ahead - Economic data (GMT)
•13:30 Canada Nov Retail Sales (MoM) -0.5% forecast,-1.4% previous
•13:30 Canada Nov Core Retail Sales (MoM) -0.4% forecast,1.7% previous
•15:00 US Dec Existing Home Sales (MoM) -5.4% forecast,-7.7% previous
•15:00 US Dec Existing Home Sales 3.96M forecast,4.09M previous
•18:00 U.S. Baker Hughes Oil Rig Count 623 previous
•18:00 U.S. Baker Hughes Total Rig Count 725 previous
Looking Ahead - Economic events and other releases (GMT)
•14:00 US FOMC Member Harker Speaks
•15:30 ECB's Elderson Speaks
•18:00 US Fed Waller Speaks
Fxbeat
EUR/USD: The euro dipped on Friday as investors fretted about the risks of a global recession as the Federal Reserve presses on with interest rate increases. Worries about more Fed tightening were heightened by robust U.S. employment data and fresh hawkish rhetoric from central bank officials. Boston Fed President Susan Collins said the central bank would probably need to raise rates to “just above 5%, then hold them there, while Fed Vice Chair Lael Brainard said that despite the recent moderation in inflation, it remains high and “policy will need to be sufficiently restrictive for some time . Immediate resistance can be seen at 1.0896(23.6%fib), an upside break can trigger rise towards 1.0950 (Higher BB).On the downside, immediate support is seen at 1.0778(5DMA), a break below could take the pair towards 1.0693(38.2%fib).
GBP/USD: The pound fell on Friday after weak retail sales data reminded investors about the gloomy outlook for the British economy. Data released Friday showed that British consumers unexpectedly cut back their spending in December. Sterling was down 0.26% against the dollar at $1.236. That was below a $1.244 peak touched on Thursday, which was itself not far off the highest level since October 2022. Immediate resistance can be seen at 1.2383(23.6%fib), an upside break can trigger rise towards 1.2438(Higher BB).On the downside, immediate support is seen at 1.2265 (5DMA), a break below could take the pair towards 1.2173 (Jan 17th low).
USD/CHF: The dollar strengthened against the Swiss franc on Friday as dollar strengthened on fears of an economic slowdown. A flurry of U.S. data on Thursday indicated the world's biggest economy was slowing down after multiple rate increases by the Fed. Money markets show traders are preparing for an end to rate rises by the middle of this year.However, the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, pointing to another month of solid job growth and continued labour market tightness. Immediate resistance can be seen at 0.9214 (5DMA), an upside break can trigger rise towards 0.9268 (38.2%fib).On the downside, immediate support is seen at 0.9145 (23.6%fib), a break below could take the pair towards 0.9100 (Psychological level).
USD/JPY: The dollar strengthened on Friday as a slew of data feeds concern among investors that an economic slowdown could be unavoidable. The dollar edged up 0.2% against a basket of other major currencies to 102.17, holding narrowly above Wednesday's seven-month lows. The Japanese yen bore the brunt of the dollar's strength. The dollar rose by as much as to 129.26. The yen, which investors have long been favoured as a safe-haven and a funding currency, has had a volatile few weeks.Speculators are betting that the Bank of Japan, the last major central bank to still employ loose monetary policy, is edging towards a shift to a tighter stance. Strong resistance can be seen at 130.00 (Psychological level), an upside break can trigger rise towards 130.24 (38.2% fib).On the downside, immediate support is seen at 127.62 (23.6% fib), a break below could take the pair towards 126.25 (Lower BB).
Equities Recap
European shares climbed on Friday, as optimistic investors gauged the potential impact of a week-long Lunar New Year holidays after China lifted its COVID-19 curbs, even as concerns over global economic slowdown continued to sap sentiment.
At (GMT 12:15 ),UK's benchmark FTSE 100 was last trading down at 0.14percent, Germany's Dax was up by 0.41 percent, France’s CAC was up by 0.56percent.
Commodities Recap
Gold prices scaled their highest levels since late April on Friday and were on track for a fifth consecutive weekly gain amid anticipation of slower rate hikes from the U.S. Federal Reserve and fears of a possible recession.
Spot gold was little changed at $1,931.59 per ounce, as of 0939 GMT. Prices rose 0.6% this week so far.U.S. gold futures rose 0.5% to $1,933.00.
Oil rose on Friday and was heading for a second straight weekly gain, spurred largely by brightening economic prospects for China and resulting expectations of a boost to fuel demand in the world's second-biggest economy.
Brent crude gained 38 cents, or 0.4%, to $86.54 a barrel by 0912 GMT. U.S. crude advanced 74 cents, or 0.9%, to $81.07.
