Market Roundup
•US Retail Inventories Ex Auto (Nov): 0.6%, 0.3% previous
•US Wholesale Inventories (MoM) (Nov): -0.2%, 0.1% forecast, 0.2% previous
•US Natural Gas Storage: -93B, -125B previous
•US U.S. Baker Hughes Oil Rig Count: 483, 483 previous
•US Crude Oil Inventories: -4.237M, -0.700M forecast, -0.934M previous
Looking Ahead Economic (GMT)
•No Data Ahead
Looking Ahead Events And Other Releases (GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro strengthened on Friday as the greenback eased in volatile holiday-thinned trade. The U.S. dollar index , which measures the greenback against six currencies including the yen, euro and sterling, was down 0.12% on the day at 107.95. It has been in a holding pattern around 108 all week, and was still hovering close to the two-year high of 108.54 it hit last Friday. For the month, the dollar index is up 2%, bringing year-to-date gains to 6.4%.The euro edged up 0.14% to $1.0439, but was still heading for a 1.3% decline for December. Immediate resistance can be seen at 1.0444(38.2%fib), an upside break can trigger rise towards 1.0519(50%fib).On the downside, immediate support is seen at 1.0363(23.6%fib), a break below could take the pair towards 1.0300(Psychological level)
GBP/USD: The pound rebounded strongly on Friday as the greenback weakened in volatile, holiday-thinned trade. Recent shifts in expectations for more British rate cuts have pressured the pound, while a hawkish Federal Reserve and a resilient U.S. economy have driven up U.S. Treasury yields, supporting the dollar. Despite these challenges, the pound has performed better than other major currencies this year, down just 1.5% year-to-date after holding its ground against the greenback for much of 2024. The pound was up 0.35% against the dollar at $1.2569, recovering from an earlier 0.17% decline. Immediate resistance can be seen at 1.2604(38.2%fib), an upside break can trigger rise towards 1.2701 (50%fib).On the downside, immediate support is seen at 1.2496(23.6%fib), a break below could take the pair towards 1.2486(Lower BB)
USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on concerns over potential trade tensions and the possibility of tariffs dampened sentiment towards the Canadian dollar. The focus will shift to Donald Trump's arrival in the White House, who pledged to impose a 25% tariff on all imports from Canada, a blow to a country that sends a majority of its crude exports to the U.S.Trading volumes were light on Friday with many traders on holiday after Wednesday’s Christmas holiday and before next week’s New Year holiday The loonie was trading 0.2% lower at C$1.4429 to the greenback, after trading in a range of 1.4376 to 1.4449.Immediate resistance can be seen at 1.4450(23.6% fib), an upside break can trigger rise towards 1.4517(Higher BB).On the downside, immediate support is seen at 1.4319 (38.2%fib), a break below could take the pair towards 1.4216(50%fib).
USD/JPY: The U.S. dollar eased slightly on Friday but remained near a five-month high amid light liquidity trading. A summary of opinions from the BOJ's December policy meeting, released on Friday, revealed that some officials were becoming more confident about a near-term rate increase, while others remained cautious due to uncertainties over wage trends and Trump's policies. BOJ Governor Kazuo Ueda stated last week that it would take considerable time to fully assess the outlook for wages and global economies, particularly the United States. The dollar is on track for a 5.3% gain against the yen this month and an 1.8% advance for the year. Immediate resistance can be seen at 157.91 (23.6%fib) an upside break can trigger rise towards 158.81 (Higher BB). On the downside, immediate support is seen at 157.26(Daily low) a break below could take the pair towards 156.640 (38.2%fib).
Equities Recap
Europe's STOXX 600 index posted its first weekly gain in three on Friday, driven by advances in healthcare and financial stocks, concluding a holiday-shortened week on a positive note.
UK's benchmark FTSE 100 closed up by 0.16 percent, Germany's Dax closed up by 0.68 percent, France’s CAC closed up by 1.00 percent.
Wall Street's holiday euphoria came to an abrupt end on Friday, with all three major indexes finishing down in a broad-based sell-off that hit even tech and growth companies, which had powered markets higher for much of the abbreviated trading week.
Dow Jones closed down by 0.77 % percent, S&P 500 closed down by 1.11% percent, Nasdaq settled down by 1.48% percent.
Commodities Recap
Gold prices fell on Friday as higher U.S. Treasury rates reduced the attractiveness of non-yielding metal in a holiday-shortened week, with investors focusing on President-elect Donald Trump's return to office and the possible influence of his inflationary policies on the Fed's 2025 forecast.
Spot gold fell 0.6% to $2,619.33 per ounce, as of 1:41 p.m. ET (1841 GMT). Bullion has lost 0.1% this week. U.S. gold futures settled 0.8% lower at $2,631.90.
Oil prices finished more than 1% higher on Friday, posting a weekly gain despite low trading volume ahead of the end of the year, boosted by a larger-than-expected drawdown in US oil stocks last week.
Brent crude futures rose 91 cents, or 1.2%, to settle at $74.17 per barrel. U.S. West Texas Intermediate crude futures rose 98 cents, or 1.4%, to $70.60 per barrel.
