Market Roundup
• Canada Manufacturing Sales (MoM) (Sep) 3.3%, 2.8% forecast, -1.1% previous
• Canada Wholesale Sales (MoM) (Sep) 0.6% ,0.0% forecast,-1.0% previous
•US Natural Gas Storage 45B, 34B forecast,33B previous
•US. Baker Hughes Oil Rig Count 417, 415 forecast,414 previous
•US Baker Hughes Total Rig Count 549, 548 previous
Looking Ahead Economic Data(GMT)
•No Data Ahead
Looking Ahead Events And Other Release(GMT)
•No Events Ahead
Currency Summaries
EUR/USD : The euro slipped against the dollar on Friday as traders debated the likelihood of a Federal Reserve rate cut in December. A backlog of economic data delayed by the federal government shutdown is set for release starting next week.Risk sentiment has been weighed down by concerns over high stock valuations and Fed policy, though the S&P 500 and Nasdaq Composite rebounded on Friday. The dollar had weakened on Thursday even as equities fell and Treasury yields rose.Additional Fed officials have signaled caution on further easing, citing inflation concerns. Fed funds futures currently price in just a 41% chance of a 25-basis-point cut in December. The dollar index , which measures the greenback against a basket of currencies rose 0.07% to 99.31, with the euro down 0.12% at $1.1617. Immediate resistance can be seen at 1.1656(50%fib), an upside break can trigger rise towards 1.1685 (Higher BB).On the downside, immediate support is seen at 1.1578(38.2%fib), a break below could take the pair towards 1.1486(Lower BB).
GBP/USD: Sterling slipped lower against the dollar on Friday as pound attracted sellers after reports showed that British government had scrapped plans to increase income tax in its upcoming budget. A government source said on Friday that British finance minister Rachel Reeves has no intention of increasing income tax in her November 26 annual budget, citing an improved fiscal outlook. Reeves had been widely expected to abandon Labour’s pre-election pledge and raise income tax rates to plug a budget gap, but the Financial Times reported late Thursday that she has now dropped those plans.Reeves will likely need to raise tens of billions of pounds to meet her fiscal goals, and her recent remark that “we will all have to contribute” was interpreted as signaling a possible break from the government’s key election promise by increasing income tax rates.Investors reacted negatively at first, sending bond yields up by more than 10 basis points at one stage, while sterling dropped nearly 0.5% against the dollar. Immediate resistance can be seen at 1.3198(38.2%fib), an upside break can trigger rise towards 1.3243(SMA 20).On the downside, immediate support is seen at 1.3000(Psychological level), a break below could take the pair towards 1.2977(Lower BB).
USD/CAD: The Canadian dollar steadied against the U.S. dollar on Friday, supported by rising oil prices and domestic data reinforcing the Bank of Canada’s stance to keep its interest rate pause in place.Canadian factory sales rose 3.3% in September from August, driven by higher shipments of transportation equipment and petroleum and coal products, exceeding analysts’ expectations of a 2.8% gain. Separate data showed wholesale trade climbed 0.6% in September.Oil, one of Canada’s key exports, settled 2.4% higher at $60.09 a barrel, buoyed by supply concerns after the Black Sea port of Novorossiisk halted exports following a Ukrainian drone attack.The loonie was trading nearly unchanged at 1.4025 per U.S. dollar, after moving in a range of 1.4015 to 1.4045. For the week, the currency was up 0.2%, clawing back some ground after it hit a near seven-month low earlier in November .Immediate resistance can be seen at 1.4040 (38.2%fib), an upside break can trigger rise towards 1.4132(Higher BB).On the downside, immediate support is seen at 1.3988(Nov 14th low), a break below could take the pair towards 1.3954(50%fib).
USD/JPY: The U.S. dollar slipped on Friday as the yen recovered some ground amid rising expectations of potential Japanese intervention. Finance Minister Satsuki Katayama emphasized on Wednesday that authorities were closely monitoring “one-sided, sharp moves” in the currency market, noting that the downsides of a weaker yen now outweigh the benefits. However, Japan’s efforts to stem the yen’s decline appear less effective this time, partly due to Prime Minister Sanae Takaichi appointing advisors who support aggressive fiscal and monetary stimulus. While Tokyo officials continue verbal warnings against rapid depreciation, their message is increasingly challenged by voices advocating the benefits of a weaker yen.Takaichi, a strong supporter of expansionary policies, has filled key government panels with advocates of heavy spending and low interest rates, a combination that typically exerts downward pressure on the yen. Immediate resistance can be seen at 154.58(23.6%fib) an upside break can trigger rise towards 155.00 (Psychological level) .On the downside, immediate support is seen at 152.90 (38.2%fib) a break below could take the pair towards 152.98 (SMA20).
Equities Recap
European shares slipped Friday as hawkish Fed remarks dimmed hopes for a near-term rate cut, despite the STOXX 600 posting its best week since late September.
UK's benchmark FTSE 100 closed down by 1.11 percent, Germany's Dax ended down by 0.69 percent, France’s CAC finished the day down by 0.76percent.
Wall Street closed mixed Friday as investors awaited Nvidia’s results and weighed the risk of a delayed Fed rate cut in December.
Dow Jones closed down by 0.65 percent, S&P 500 closed down by 0.05 percent, Nasdaq settled up by 0.13 % percent.
Commodities Recap
Oil prices settled up more than $1 on supply fears after the Black Sea port of Novorossiisk halted oil exports following a Ukrainian drone attack on an oil depot in the major Russian energy hub.
U.S. crude settled up 2.39%, or $1.40 at $60.09 a barrel and Brent LCOc1 settled at $64.39 per barrel, up 2.19% or $1.38 on the day.
Gold prices lost ground after the Fed officials' hawkish remarks. Spot gold fell 2.12% to $4,082.76 an ounce. U.S. gold futures fell 2.4% to $4,086.50 an ounce.
