Market Roundup
•US Indexes mixed: Dow up 0.04%, S&P down 0.16%, Nasdaq down 0.18%
•Canada Apr Core Retail Sales (MoM) 1.8%,0.5% forecast,-0.6% previous
•Canada May RMPI (MoM) -1.0%, -0.6%forecast,5.5% previous
•Canada Apr Retail Sales (MoM) 0.7%, 0.7% forecast, -0.2% previous
•US Jun Services PMI 55.1,53.4 forecast,54.8 previous
•US Jun S&P Global Composite PMI 54.6, 54.5 previous
•US Jun Manufacturing PMI 51.7, 51.0 forecast,51.3 previous
•US May Leading Index (MoM) -0.5%, -0.4% forecast,-0.6% previous
•US May Existing Home Sales 4.11M, 4.08M forecast,4.14M previous
•US May Existing Home Sales (MoM) -0.7%, -1.9% previous
•US Natural Gas Storage 71B,69B forecast,74B previous
Looking Ahead Economic Data(GMT)
•No Economic Data
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro eased on Friday data showed Euro zone business recovery slows sharply in June. Euro zone business growth slowed sharply this month as demand fell for the first time since February, a survey found, with the bloc's services industry showing some signs of weakening while the downturn in manufacturing took a turn for the worse.That was despite the European Central Bank delivering a widely telegraphed cut to interest rates earlier this month and expectations in a Reuters poll for two more reductions this year.HCOB's preliminary composite Purchasing Managers' Index, compiled by S&P Global, sank to 50.8 this month from May's 52.2, confounding expectations in poll for a rise to 52.5. The overall new business index dropped to a four-month low of 49.2 from 51.6.A PMI for the currency union's dominant services industry fell to 52.6 from 53.2. Immediate resistance can be seen at 1.0728(38.2% fib), an upside break can trigger rise towards 1.0776(50% fib).On the downside, immediate support is seen at 1.0677(23.6% fib), a break below could take the pair towards 1.0658(Lower BB).
GBP/USD: The pound briefly edged up on Friday, after data showed UK retail sales beat expectations in May, offering some comfort about the resilience of the British consumer a day after the Bank of England paved the way for a possible August rate cut. On Friday, British retail sales volumes rose 2.9% in May, rising sharply from a revised 1.8% fall in April when heavy rain kept shoppers away, the Office for National Statistics. Economists polled had on average forecast sales volumes would increase by 1.5% on the month. A separate release on UK public finances painted a more downbeat picture, which could weigh on gilt prices and, ultimately, sterling. Sterling rose to a session high of $1.2675 shortly after the retail sales numbers, before nudging back to $1.2669, up 0.1% on the day and heading for a third weekly decline of 0.3%. Immediate resistance can be seen at 1.2668(38.2%fib), an upside break can trigger rise towards 1.2724(23.6%fib).On the downside, immediate support is seen at 1.2624(38.2%fib), a break below could take the pair towards 1.2586(50% fib).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Friday as lower oil price and stronger dollar weighed on Canadian dollar. The U.S. dollar , opens new tab rose to a seven-week high versus a basket of other currencies with the Federal Reserve's patient approach to cutting interest rates contrasting with more dovish stances elsewhere. A stronger U.S. dollar can also reduce demand for oil by making greenback-denominated commodities like oil more expensive for holders of other currencies. Canadian retail sales rose 0.7% in May from April. Analysts polled had expected retail sales growth of 0.7%.Excluding autos. retail sales rose 1.8% in May, Statistics Canada said. Analysts had forecast May sales, excluding autos, to be up 0.7% .The loonie was trading 0.1% lower at C$1.3699 to the greenback, after trading in a range of 1.3675 to 1.3705. Immediate resistance can be seen at 1.3726(38.2%fib), an upside break can trigger rise towards 1.3762(June 18th high).On the downside, immediate support is seen at 1.3676 (50%fib), a break below could take the pair towards 1.3627 (61.8%fib).
USD/JPY: The dollar touched an eight-week high against yen on Friday after a gauge of U.S. business activity edged up to a more than two-year high.S&P Global said its flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, inched up to 54.6 this month, the highest since April 2022, from a 54.5 reading in May. A reading above 50 indicates expansion. Against the Japanese yen , the dollar strengthened 0.43% to 159.59. That level had not been seen since late April when Japanese authorities intervened to halt the rapid fall in the currency.Japanese data earlier on Friday indicated the country's demand-led inflation slowed in May, clouding the picture for a rate hike from the Bank of Japan. Strong resistance can be seen at 159.85(23.6%fib), an upside break can trigger rise towards 160.23(April 29th high).On the downside, immediate support is seen at 158.78 (Daily low), a break below could take the pair towards 158.31 (38.2%fib).
Equities Recap
European stocks closed lower, pressured by falls in bank stocks and technology shares against a backdrop of economic data showing euro zone business growth slowed sharply this month.
UK's benchmark FTSE 100 closed down by 0.42 percent, Germany's Dax ended down by 0.61 percent, France’s CAC finished the day down by 0.56 percent.
The S&P 500 and Nasdaq closed marginally lower on Friday, weighed down by a decline in Nvidia shares for a second straight day, which dragged down the technology sector.
Dow Jones closed up by 0.04 percent, S&P 500 ended down by 0.16 percent, Nasdaq finished the day downby 0.16 percent.
Commodities Recap
Crude prices eased about 1% on Friday on worries that global oil demand growth could be hit by a strong U.S. dollar and negative economic news from some parts of the world.
Brent futures fell 47 cents, or 0.6%, to settle at $85.24 a barrel, while U.S. West Texas Intermediate crude (WTI) ended 56 cents, or 0.7%, lower at $80.73.
Gold prices dropped more than 1% on Friday, weighed down by a stronger dollar and higher bond yields after data showed strong U.S. business activity, while auto-catalyst metal palladium jumped to a one-month high.
Spot gold was down 1.7% at $2,319.95 per ounce as of 01:47 p.m. ET (1747 GMT). U.S. gold futures settled 1.6% lower to $2,331.20.
