Market Roundup
• Canada May Retail Sales (MoM) -0.8%,-0.5% forecast, 0.7% previous
• Canada Jun RMPI (MoM) -1.4%,-0.7% forecast,-1.0% previous
• Canada Jun IPPI (YoY) 2.8%,1.8% previous
• Canada Jun IPPI (MoM) 0.0%,0.2% forecast,0.0% previous
• Canada Jun RMPI (YoY) 7.5%,7.6% previous
• Canada May Core Retail Sales (MoM) -1.3%,-0.5% forecast,1.8% previous
• U.S. Baker Hughes Oil Rig Count 477,478 previous
• U.S. Baker Hughes Total Rig Count 586,584 previous
Looking Ahead Economic Data(GMT)
•No data Ahead
Looking Ahead Events And Other Releases(GMT)
•No Significant events
Currency Summaries
EUR/USD: The euro dipped on Friday as lack of policy direction from the European Central Bank following its decision to hold rates steady earlier in the week added to investors' uncertainty. With global markets lined up for quick-fire U.S. rate cuts, the ECB signalled heightened concerns about volatile inflation, helping to sustain an upward shift for the euro that is near four-month highs after being shaken by French government turmoil in June.The ECB left its deposit rate unchanged at 3.75% after lowering it from 4% in June for the first time in five years and president Christine Lagarde stressed it was not committed to a particular rate pathThe euro was trading at around $1.088, down on the day but still heading for its biggest monthly jump since November. Immediate resistance can be seen at 1.0951(23.6%fib), an upside break can trigger rise towards 1.0982 (Higher BB).On the downside, immediate support is seen at 1.0873(38.2%fib), a break below could take the pair towards 1.0814(50%fib).
GBP/USD: The pound eased against dollar after data showed UK retail sales fell more than expected in June. British retail sales volumes fell by more than expected in June, after unseasonably cooler weather put off shoppers, official figures showed on Friday. Sales volumes dropped by 1.2% last month after a 2.9% jump in May, the Office for National Statistics said. While wages are now rising more quickly than inflation, British shoppers have been squeezed by high inflation over the past two years. It has slowed recently and held at the Bank of England's 2% target last month. However, underlying inflation pressures have diminished hopes among investors for an interest rate cut on Aug. 1, the date of the BoE's next scheduled monetary policy announcement.. Immediate resistance can be seen at 1.2958(Daily high), an upside break can trigger rise towards 1.3001(23.6%fib).On the downside, immediate support is seen at 1.2919(38.2%fib), a break below could take the pair towards 1.2817(50%fib).
USD/CAD: The Canadian dollar weakened to a 17-day low against its U.S. counterpart on Friday as Canadian retail sales fell more than expected and investors weighed the potential for a change of leadership in the United States to roil global trade. Canadian retail sales fell 0.8% in May from April, compared with estimates for a decline of 0.6%, while a preliminary estimate showed sales down 0.3% in April.The data, along with cooler-than-expected Canadian inflation data on Tuesday, supported bets the Bank of Canada will ease interest rates further. The loonie was trading 0.2% lower at 1.3730 to the U.S. dollar, after touching its weakest intraday level since July 2 at 1.3747. For the week, the currency was down 0.7%. Immediate resistance can be seen at 1.3747 (38.2% fib), an upside break can trigger rise towards 1.3796 (23.6% fib).On the downside, immediate support is seen at 1.3690(50% fib), a break below could take the pair towards 1.3644 (61.8% fib).
USD/JPY: The dollar edged higher against Japanese on Friday as dollar firmed on recent U.S. economic data and concerns about the technology outage. The dollar index was on track for its second straight daily advance, its first in two weeks, to put the greenback on pace for its first weekly gain. The Federal Reserve is scheduled for its next policy announcement at the end of July. Markets expect only a slight chance for a cut of at least 25 basis points (bps), while almost completely pricing in a cut at its September meeting, according to CME's FedWatch Tool. Against the yen the dollar strengthened 0.07% at 157.48 on the session. The yen has fallen more than 10% against the dollar this year, largely due to the wide difference in interest rates between the U.S. and Japan, and hit 38-year lows at the beginning of the month, spurring action from Tokyo Strong resistance can be seen at 157.43(38.2%fib), an upside break can trigger rise towards 158.66(50%fib). On the downside, immediate support is seen at 155.94 (23.6%fib), a break below could take the pair towards 155.00 (Psychological level).
Equities Recap
European shares clocked weekly losses as a selloff in technology shares, some downbeat earnings along with falling commodity-linked stocks weighed, ending a tumultuous week marked by a global tech outage on Friday.
UK's benchmark FTSE 100 closed down by 0.60 percent, Germany's Dax ended down by 1.00 percent, France’s CAC finished the day down by 0.69 percent.
U.S. stocks continued their decline on Friday as ongoing disruptions from a global technical outage due to a software glitch added to the market's existing uncertainty.
Dow Jones closed down up by 0.93 percent, S&P 500 ended down by 0.71 percent, Nasdaq finished the day down by 0.78 percent.
Commodities Recap
Gold prices fell over 2% on Friday as the dollar strengthened and profit-taking ensued after bullion reached an all-time peak earlier in the week.
Spot gold was down 1.9% at $2,399.27 per ounce by 1758 GMT. Bullion hit an all-time high of $2,483.60 on Wednesday.U.S. gold futures settled 2.3% lower to $2,399.10.
Oil prices slipped on Friday and was on track for a second consecutive weekly loss, as a strong dollar and concerns about China's economy outweighed a tighter supply outlook.
Brent crude prices fell by 83 cents, or 1%, to $84.28 a barrel by 1330 GMT. U.S. West Texas Intermediate crude futures slipped 63 cents, or 0.8%, to $82.19.
