Market Roundup
•US Jul Building Permits (MoM) -4.0%,3.9% previous
•US Jul Building Permits 1.396M, 1.430M forecast,1.454M previous
•US Jul Housing Starts 1.238M,1.340M forecast,1.353M previous
• Canada Jun Foreign Securities Purchases by Canadians 16.350B,3.860B previous
•US Jul Housing Starts (MoM) -6.8%, 3.0% previous
• Canada Jun Manufacturing Sales (MoM) -2.1%, -2.3%forecast,0.4% previous
• Canada Foreign Securities Purchases 5.17B, 15.90B forecast,20.89B previous
•US Aug Michigan 1-Year Inflation Expectations 2.9%,2.9% previous
•US Aug Michigan 5-Year Inflation Expectations 3.0%, 3.0% previous
•US Aug Michigan Consumer Sentiment 67.8,66.7 forecast,66.4 previous
Looking Ahead Economic Data (GMT)
•No data ahead
Looking Ahead Events And Other Releases (GMT)
• No events ahead
Currency Summaries
EUR/USD: The euro strengthened on Friday as dollar fell after data showed disappointing U.S. housing numbers. U.S. single-family homebuilding fell in July as higher mortgage rates and house prices kept prospective buyers on the sidelines, suggesting the market remained depressed at the start of the third quarter. Markets will look forward to next week's Jackson Hole event in Wyoming, one of the premier global central bank gatherings where Federal Reserve Chair Jerome Powell is expected to speak. The euro was last up 0.16% against the greenback to $1.0984. Immediate resistance can be seen at 1.1025(23.6%fib), an upside break can trigger rise towards 1.1040(Higher BB).On the downside, immediate support is seen at 1.09844(Daily low), a break below could take the pair towards 1.0946(38.2%fib).
GBP/USD: Sterling touched a three-week high on Friday as retail sales data added to signs of positive momentum in the UK economy, with gains underpinned by a broad recovery in risk appetite. Data revealed that British retail sales rose by 0.5% in July, partially driven by increased spending during the men's Euros soccer championship. This modest gain followed a 0.9% decline in June, when unusually cool and wet weather deterred shoppers. Additionally, UK gross domestic product (GDP) grew by 0.6% in the second quarter of 2024, aligning with economists' expectations. The pound climbed 0.4% against the dollar to $1.2904 on Friday - its strongest level since July 25. Immediate resistance can be seen at 1.2920(23.6%fib), an upside break can trigger rise towards 1.2937(July 24th high).On the downside, immediate support is seen at 1.2812(38.2%fib), a break below could take the pair towards 1.2743(50%fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Friday as equity markets held on to recent gains and ahead of domestic inflation data in the coming week that could guide expectations for Bank of Canada interest rate cuts. The University of Michigan's preliminary reading on the overall index of consumer sentiment rose in August, while inflation expectations remained unchanged over the next year and beyond. Domestic data was mixed. Factory sales fell 2.1% month-over-month in June, while housing starts jumped 16% in July.The Canadian consumer price index report for July, due on Tuesday, is expected to show inflation slowing to 2.4% from 2.7% in June .Immediate resistance can be seen at 1.3719 (38.2% fib), an upside break can trigger rise towards 1.3750 (50% fib).On the downside, immediate support is seen at 1.3677(23.6% fib), a break below could take the pair towards 1.3639 (Lower BB).
USD/JPY: The dollar fell against the yen on Friday as investors assessed economic data to gauge the Federal Reserve's appetite for interest-rate cuts. Disappointing U.S. housing numbers also kept pressure on the greenback, helping it shed some of the lift it got a day earlier from data showing inflation trending down and consumer resilience. U.S. single-family homebuilding fell in July as higher mortgage rates and house prices kept prospective buyers on the sidelines, suggesting the market remained depressed at the start of the third quarter. The dollar fell 1.04% against the Japanese yen JPY=EBS to 147.75,having touched a two-week high of 149.40 in the prior session. Strong resistance can be seen at 149.55(38.2 %fib), an upside break can trigger rise towards 150.00(Psychological level). On the downside, immediate support is seen at 147.88(Daily low), a break below could take the pair towards 146.23(23.6 %fib).
Equities Recap
European shares ended the week with healthy gains as upbeat risk sentiment prevailed globally following a slew of U.S. data, but the focus now turns to the keenly-awaited speech by Federal Reserve Chair Jerome Powell at Jackson Hole next week.
The UK's benchmark FTSE 100 closed down by 0.43 percent, Germany's Dax ended up by 0.77percent, and France’s CAC finished the up by 0.35 percent.
U.S. stocks ended higher on Friday, extending their biggest weekly percentage gains of the year as worries of an economic downturn eased and investors focused on the Jackson Hole Economic Symposium next week.
Dow Jones closed up by 0.24 percent, S&P 500 was up 0.20 percent, Nasdaq was up by 0.21 percent.
Commodities Recap
Gold prices soared to an all-time high on Friday as the dollar weakened on growing expectations for an interest-rate cut from the Federal Reserve in September, and as tensions in the Middle East bolstered demand for bullion.
Spot gold was up 1.7% to $2,498.72 per ounce by 02:27 p.m. EDT (1827 GMT), after hitting a record high of $2,500.99 earlier. U.S. gold futures settled 1.8% higher at $2,537.80. Bullion rose 2.8% this week.
Oil prices settled down nearly 2% on Friday, little changed on the week with Brent crude below $80 a barrel, as investors tempered expectations of demand growth from top oil importer China.
Brent crude futures fell $1.36, or 1.7%, to settle at $79.68 per barrel. U.S. West Texas Intermediate crude futures declined by $1.51, or 1.9%, to $76.65.
