America’s Roundup: Dollar gains before Fed meeting, inflation data ,Wall Street ends up, Gold eases, Oil posts second weekly decline as demand concerns overshadow Saudi cut

Market Roundup

•Canada May Employment Change -17.3K,23.2K forecast, 41.4K previous

•Canada Capacity Utilization Rate (Q1) 81.9%,82.2% forecast, 81.7% previous

•Canada May Unemployment Rate 5.2% , 5.1% forecast,5.0% previous

•Canada May Full Employment Change -32.7K,-6.2K previous

•Canada May Participation Rate 65.5%, 65.6% forecast,65.6% previous

•Canada May Part Time Employment Change15.5K, 47.6K 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 eased against dollar on Friday as investors braced for a European Central Bank's policy meeting tilted on the hawkish side late next week. Analysts expect the ECB to raise rates by 25 basis points while being careful not to signal a pause in the tightening path. Such a move might lead markets to scale back their bets about future rate hikes, triggering an unwanted easing of financial conditions. The euro was last down 0.30% against the dollar at $1.0749. Immediate resistance can be seen at 1.0825(50%fib), an upside break can trigger rise towards 1.0870 (LowerBB).On the downside, immediate support is seen at 1.0755 (38.2%fib), a break below could take the pair towards 1.0732(5DMA).

GBP/USD: The pound headed for a second week of gains on Friday, boosted by the prospect of UK interest rates catching up with U.S. rates, as the Bank of England fights to bring down the highest inflation across leading economies Money markets are currently pricing in a peak of 5.5% for UK rates, up from 4.5% right now.U.S. rates, by contrast, are at 5.25%, which traders roughly believe is at, or close to, the peak. Another 100 basis points in rises from the BoE would erode the appeal of the dollar among yield-hungry investors. Sterling is on track for a weekly rise of 0.7%, on the heels of last week’s 0.8% gain.Immediate resistance can be seen at 1.2582 (23.6%fib), an upside break can trigger rise towards 1.2602(Higher BB).On the downside, immediate support is seen at 1.2484(5DMA), a break below could take the pair towards 1.2448(38.2%fib).

USD/CAD: The Canadian dollar was barely changed against its U.S. counterpart on Friday, holding near a two-month high, as investors continued to bet on another Bank of Canada rate hike despite domestic data showing a surprise jobs decline. Canada's economy shed 17,300 jobs in May, missing forecasts for a gain of 23,200, and the unemployment rate rose for the first time in nine months. The price of oil, one of Canada's major exports, settled 1.6% lower at $71.25 a barrel as disappointing Chinese data added to doubts about demand growth. .Immediate resistance can be seen at 1.3375(5 DMA), an upside break can trigger rise towards 1.3390 (38.2% fib).On the downside, immediate support is seen at 1.3305(23.6%fib), a break below could take the pair towards 1.3227 (Lower BB).

USD/JPY: The U.S. dollar strengthened against Japanese yen on Friday as investors awaited inflation data and the Federal Reserve's interest rate decision next week for any new clues on how high the U.S. central bank is likely to hike rates.The Fed is expected to hold rates steady at its June 13-14 meeting, but is likely to remain hawkish and indicate a probable hike in July as inflation stays above its 2% target. Data due on Tuesday is expected to show headline inflation rose at an annual rate of 4.1% in May, while core prices gained 5.3%.Strong resistance can be seen at 139.51(5DMA) an upside break can trigger rise towards 140.18(23.6%fib).On the downside, immediate support is seen 138.88(Daily low), a break below could take the pair towards 138.23(38.2%fib)

Equities Recap

European shares slipped on Friday, rounding off a lacklustre week that saw investors step to the sidelines ahead of crucial updates from the U.S. Fed and European Central Bank (ECB), while Croda slid on a tepid profit outlook..

UK's benchmark FTSE 100 closed down by 0.49 percent, Germany's Dax ended down by 0.25 percent, France’s CAC finished the day down by 0.12 percent.

The S&P 500 closed higher on Friday but off session highs, as a Tesla rally failed to galvanize the broader market on the eve of the Federal Reserve's policy meeting and inflation data next week.

Dow Jones was trading up by 0.13 percent, S&P 500 was trading up by 0.11 percent, Nasdaq was trading up by 1.16 percent.

Treasuries Recap

Treasury yields turned higher on Friday as the market anticipated the Federal Reserve will pause its aggressive hiking of interest rates next week but maintain a hawkish stance as the U.S. central bank remains on guard against high inflation.

The two-year U.S. Treasury yield, a barometer for where the market perceives future Fed policy, rose 8.5 basis points to 4.604%, while the yield on benchmark 10-year notes rose 3.1 basis points to 3.745%, further inverting the Treasury yield curve.

Commodities Recap

Gold eased on Friday on a stronger dollar and higher yields but was set for its best week since early May after weaker jobs data bolstered bets for the Federal Reserve to hold pat on interest rates next week.

Spot gold fell 0.3% to $1,961.39 per ounce by 3:15 p.m. EDT (1915 GMT).U.S. gold futures settled down 0.1% to $1,977.20.

Oil prices fell more than a dollar a barrel on Friday to record a second straight weekly decline, as disappointing Chinese data added to doubts about demand growth after Saudi Arabia's weekend decision to cut output.

Brent crude futures fell $1.17, or 1.5%, to settle at $74.79 a barrel, while the U.S. West Texas Intermediate crude fell $1.12, or 1.6%, to $70.17 a barrel.