Market Roundup
•UK Dec Retail Sales (MoM) -3.7%, -0.6%,1.4% previous
•UK Dec Core Retail Sales (MoM) -3.6%,-0.5% forecast, 1.1% previous
•UK Dec Core Retail Sales (YoY) -3.0%,1.1% forecast, 2.7% previous
•UK Dec Retail Sales (YoY) -0.9%, 3.4% forecast, 4.7% previous
•Canada Dec New Housing Price Index (MoM) 0.2% ,1.0% forecast, 0.8% previous
• Canada Nov Retail Sales (MoM) 0.7%, 1.2% forecast, 1.6% previous
• Canada Nov Core Retail Sales (MoM) 1.1%, 1.3% forecast, 1.3% previous
• US Dec Leading Index (MoM) 0.8% ,0.8% forecast, 1.1% previous
Looking Ahead - Economic Data (GMT)
•18:00 US. Baker Hughes Oil Rig Count 481 previous
•18:00 US U.S. Baker Hughes Total Rig Count 588 previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro edged higher on Friday as mixed signals from the European Central Bank, while mounting geopolitical worries over Ukraine and a fall in equity markets boosted demand for euro. ECB president Christine Lagarde reiterated on Thursday that the central bank did not need to act as boldly as the Federal Reserve because of a different economic situation, warning against premature hikes risk. The euro was up 0.3% against the dollar at $1.1311. Immediate resistance can be seen at 1.1347 (5DMA), an upside break can trigger rise towards 1.1371(23.6%fib).On the downside, immediate support is seen at 1.13332 (38.2%fib), a break below could take the pair towards 1.1300 (50% fib).
GBP/USD: The pound weakened broadly on Friday as weakness in Wall Street prompted investors to take profits after a rally this week. Traders have pushed the pound higher on expectations the Bank of England will raise interest rates as early as next month to combat soaring inflation. Against a broadly sturdy U.S. dollar, the pound weakened 0.25% at $1.3585, its lowest levels in more than a week. Immediate resistance can be seen at 1.3610(5DMA), an upside break can trigger rise towards 1.3679(23.6%fib).On the downside, immediate support is seen at 1.3551 (50%fib), a break below could take the pair towards 1.3494 (61.8%fib).
USD/CHF: The dollar dipped against the Swiss franc on Friday as investors looked ahead to next week’s Federal Reserve meeting for more clarity on the U.S. outlook for rate hikes. Expectations that the Fed will tighten monetary policy at a faster pace than previously anticipated had driven a rise in yields and the dollar earlier this week, and the U.S. dollar index remained on track for its biggest weekly percentage gain since mid-December.U.S. Treasury yields fell Friday as concerns about potential conflict in Ukraine dented risk appetite. Markets are pricing in as many as four rate hikes this year, starting from March and expect the Fed to start trimming its $8 trillion-plus balance sheet within months. Next week’s Fed meeting could shed some light on how fast it will tighten. Immediate resistance can be seen at 0.9148 (38.2%fib), an upside break can trigger rise towards 0.9178(Daily high).On the downside, immediate support is seen at 0.9108(50%fib), a break below could take the pair towards 0.9086(Lower BB).
USD/JPY: The dollar declined against the Japanese yen on Friday as greenback took a breather on as rising U.S. Treasury yields stalled, though markets have now priced in four interest rate hikes by the Fed this year, including one as soon as March. Expectations that the Fed will tighten monetary policy at a faster pace than previously anticipated had driven a rise in yields and the dollar earlier this week. Against the yen, the dollar was last down 0.3% at 113.685. Strong resistance can be seen at 114.14 (38.2% fib), an upside break can trigger rise towards 114.03 (5DMA).On the downside, immediate support is seen at 113.63 (50%fib), a break below could take the pair towards 113.15 (61.8%fib).
Equities Recap
European stocks slumped on Friday, tracking a sell-off in global equity markets that was sparked by jitters around the pace of monetary policy tightening by central banks and weak economic data..
UK's benchmark FTSE 100 ended down at 1.20 percent, Germany's Dax closed down by 1.94 percent, France’s CAC finished the day down by 1.75 percent.
Commodities Recap
Gold was set to rise for a second consecutive week on Friday as inflation and geopolitical risks underpinned its safe-haven appeal, while strong demand and supply risks put autocatalyst palladium on course for its best week since March.
Spot gold edged down 0.1% to $1,836.60 per ounce as of 10:17 a.m. ET (1517 GMT). U.S. gold futures fell 0.2% to $1,839.20.
Oil prices slid for a second day on Friday, pressured by an unexpected rise in U.S. crude and fuel inventories while investors took profits after the benchmarks touched seven-year highs earlier in the week.
Brent futures fell 57 cents, or 0.6%, to $87.81 a barrel by 11:17 a.m. EST (1617 GMT), while U.S. West Texas Intermediate (WTI) crude fell 45 cents, or 0.5%, to $85.10.
