Market Roundup
•Canada Apr Wholesale Sales (MoM) 2.4%, 2.6% forecast,-1.1% previous
•US May Export Price Index (MoM) -0.6%,0.0% forecast,0.5% previous
•US May Import Price Index (MoM) -0.4%,0.0% forecast ,0.9% previous
•Canada Apr Manufacturing Sales (MoM) 1.1% ,1.3% forecast ,-2.1% previous
•Canada New Motor Vehicle Sales (MoM) 175.1K,172.1K previous
•US Export Price Index (YoY) 0.6%, -1.0% previous
•US Import Price Index (YoY) 1.1%,1.1% previous
•US Michigan 5-Year Inflation Expectations 3.1%,3.0% previous
•US Jun Michigan 1-Year Inflation Expectations 3.3%,3.3% previous
•US Jun Michigan Consumer Expectations 67.6, 70.0 forecast,68.8 previous
•US Jun Michigan Consumer Sentiment 65.6,72.1 forecast,69.1 previous
•US Jun Michigan Current Conditions 62.5,71.0 forecast,69.6 previous
Looking Ahead Economic Data(GMT)
•No Data Ahead
Looking Ahead Events And Other Releases (GMT)
•No Events Ahead
Currency Forecast
EUR/USD: The euro was on track for its biggest weekly fall in two months versus the dollar on Friday due to French political turmoil. The euro is on track for a 1% weekly fall - its biggest since April - and was last down 0.4% on the day at $1.0696.The euro's weakness has helped drive the dollar higher. The dollar index - which tracks the currency against six peers - was up 0.3% on the day and 0.6% on the week at 105.57.French markets endured another brutal sell-off on Friday as political uncertainty unleashed the biggest weekly jump in the premium investors demand to hold French government debt since 2011 and bank stocks tumbled. Immediate resistance can be seen at 1.0743(38.2% fib), an upside break can trigger rise towards 1.0822(23.6% fib).On the downside, immediate support is seen at 1.0689 (50% fib), a break below could take the pair towards 1.0615(61.8% fib).
GBP/USD: The pound declined on Friday as investors grappled with uncertainty around the outlook for interest rates and political turmoil in Europe.Markets appear to be taking Britain's own general election largely in their stride so far, with the opposition Labour party currently projected to win comfortably next month.Labour has tacked to the centre ground in recent years which has helped reassure businesses, although some of their policies have unnerved the super-rich.The Bank of England (BoE) is set to meet on June 20 to determine its monetary policy, with markets betting the central bank will hold the benchmark interest rate at 5.25%, despite the European Central Bank cutting earlier this month. Immediate resistance can be seen at 1.2754(23.6%fib), an upside break can trigger rise towards 1.2808(Higher BB).On the downside, immediate support is seen at 1.2676(38.2%fib), a break below could take the pair towards 1.2602(50% fib).
USD/CAD : The Canadian dollar steadied against its broadly stronger U.S. counterpart on Friday as domestic data showed an increase in factory sales and investors judged that expected Bank of Canada interest rate cuts have been built into the currency's outlook. Canadian factory sales grew by 1.1% in April from March on higher sales of motor vehicles, as well as primary metals, Statistics Canada said. Separate data for April showed wholesale trade advancing 2.4%.The price of oil , one of Canada's major exports, settled 0.2% lower at $78.45 a barrel, giving back some of its weekly gain. The loonie was trading nearly unchanged at 1.3740 to the U.S. dollar, after moving in a range of 1.3728 to 1.3779.The currency posted a modest weekly gain of 0.2% even after hitting on Tuesday its weakest intraday level in nearly two months at 1.3791 .Immediate resistance can be seen at 1.3744(38.2%fib), an upside break can trigger rise towards 1.3766 (23.6%fib).On the downside, immediate support is seen at 1.3712 (50%fib), a break below could take the pair towards 1.3685(61.8%fib).
USD/JPY: The U.S. dollar strengthened against yen on Friday after Bank of Japan to trimmed bond buying, kept rates steady. As widely expected, the BOJ kept its short-term policy rate target in a range of 0-0.1% by a unanimous vote. It also left unchanged the pace of monthly bond buying at roughly 6 trillion yen ($38 billion). The BOJ's efforts to normalise monetary policy come as other major central banks, having already tightened monetary policy aggressively to combat soaring inflation, look to cut rates. Japan's battered currency, down roughly 10% on the dollar so far this year, has become a headache for policymakers by inflating import prices, which in turn boosts living costs and hurts consumption. Strong resistance can be seen at 158.22(Daily high), an upside break can trigger rise towards 159.03(23.6%fib).On the downside, immediate support is seen at 156.92(38.2% fib), a break below could take the pair towards 155.84 (50%fib).
Equities Recap
European shares dropped in a broad-based selloff on Friday, marking a weekly loss amid political turmoil in France that has sent the French benchmark reeling.
UK's benchmark FTSE 100 closed down by 0.21 percent, Germany's Dax ended down by 0.2` percent, France’s CAC finished the day down by 2.66 percent.
The Nasdaq eked out a fifth straight record closing high on Friday following gains in Adobe and other technology-related shares, while the S&P 500 and Dow ended slightly lower.
Dow Jones closed down by 0.15% percent, S&P 500 closed down by 0.04 % percent, Nasdaq settled up by 0.15% percent.
Commodities Recap
Gold prices rose over 1% on Friday and were on track for their first weekly gain in four, as signs of slowing inflation in the U.S. raised hopes of a rate cut later this year and a stock selloff across Europe also lent support.
Spot gold was up about 1.3% at $2,332.55 per ounce by 1:55 p.m. ET (1755 GMT). Bullion gained 1.8% for the week.U.S. gold futures settled 1.3% lower at $2,349.1.
Oil futures prices settled slightly lower on Friday after a survey showed deteriorating U.S. consumer sentiment, but prices rose 4% for the week as investors weighed forecasts for solid demand for crude oil and fuel in 2024.
Brent crude futures settled down 13 cents at $82.62 a barrel, while West Texas Intermediate (WTI) U.S. crude futures were down 17 cents at $78.54.
