Market Roundup
•Belgium Feb NBB Business Climate -12.8,-16.0 forecast,-16.4 previous
•Canada Dec Budget Balance -4.47B, -4.01B previous
•Canada Dec Budget Balance (YoY) -23.61B,-19.14B previous
•U.S. Baker Hughes Oil Rig Count 503, 497 previous
• U.S. Baker Hughes Total Rig Count 626, 21 previous
Looking Ahead Economic Data(GMT)
•No Data Ahead
Looking Ahead Events And Other Releases(GMT)
•No Significant Events
Currency Summaries
EUR/USD: The euro initially gained against dollar on Friday but gave up ground after mixed Eurozone economic data. German business morale improved in February, a survey showed on Friday, though probably not enough to prevent Europe's biggest economy from slipping into another recession.The Ifo institute said its business climate index rose to 85.5 from 85.2 in January, as expected by analysts in a poll. Germany's gross domestic product (GDP) shrank by 0.3% in 2023, making it the world's worst performing major economy. The euro was little changed on the day at $1.0822 . It has dropped from $1.11395 on Dec. 28, but is up from $1.0695 on Feb. 14. Immediate resistance can be seen at 1.0869(23.6%fib), an upside break can trigger rise towards 1.0906 (Higher BB).On the downside, immediate support is seen at 1.0808(38.2%fib), a break below could take the pair towards 1.0742 (50%fib).
GBP/USD: Sterling was on track for its first weekly rise versus the dollar since mid-January on increasing risk appetite and some solid British economic data. A survey showed strong growth for services firms and business optimism at a two-year high. But British consumer sentiment fell for the first time in four months in February. Investors remained focused on the Bank of England policy path as higher rates would support the British currency. Sterling was 0.1% higher versus the dollar but set to end the week up 0.54%, in its first rise since the week ending on Jan. 12. Immediate resistance can be seen at 1.2709(23.6%fib), an upside break can trigger rise towards 1.2757(Higher BB).On the downside, immediate support is seen at 1.2649(38.2%fib), a break below could take the pair towards 1.2595(50%fib).
USD/CAD: The Canadian dollar fell against its U.S. counterpart on Friday as weakness in commodity prices weighed on Canadian dollar. Fed Governor Christopher Waller said on Thursday U.S. Federal Reserve policymakers should delay interest rate cuts by at least another couple more months.The comments pressured commodity prices, with oil down and set to snap a two-week winning streak.Canada recorded a sharply higher C$23.61 billion ($17.51 billion) budget deficit for the first nine months of the 2023/24 fiscal year as government expenditures grew faster than revenues, the finance ministry said on Friday.By comparison, the deficit in the same period a year earlier had been just C$5.54 billion, it said in a statement. Immediate resistance can be seen at 1.3517 (23.6% fib), an upside break can trigger rise towards 1.3565(Higher BB).On the downside, immediate support is seen at 1.3453 (38.2% fib), a break below could take the pair towards 1.3394(50% fib).
USD/JPY: The dollar was little changed against yen on Friday as investors took a breather on expectations that the Federal Reserve will begin cutting rates later than previously expected. Investors have pushed back expectations for the first Fed rate cut to June, from May, and dramatically reduced how far they see the U.S. central bank cutting its benchmark rate. Fed officials have projected three 25 basis point cuts this year, while markets had priced for as many as seven. The dollar index was little changed on the day on Friday at 103.93 and on track for a weekly loss of 0.34%. It has bounced from a five-month low of 100.61 on Dec. 28 and is holding below a three-month high of 104.97 reached on Feb. 14.Strong resistance can be seen at 150.78 (Higher BB) an upside break can trigger rise towards 151.56(23.6%fib).On the downside, immediate support is seen 149.79(38.2%fib), a break below could take the pair towards 149.00(Psychological level )
Equities Recap
European shares closed at a record peak for a second day on Friday after gains in Standard Chartered , opens new tab following a strong earnings report, while comments from European Central Bank President Christine Lagarde kept investors' mood in check.
UK's benchmark FTSE 100 closed up by 0.28 percent, Germany's Dax ended up by 0.28 percent, France’s CAC finished the day up by 0.70 percent.
The S&P 500 and Dow Jones Industrial Average eked out another closing record high on Friday, with all three Wall Street benchmarks scoring weekly gains, as artificial intelligence stocks had enough steam to keep the rally chugging along.
Dow Jones closed up by 0.16% percent, S&P 500 closed up by 0.03% percent, Nasdaq settled down by 0.28% percent.
Treasuries Recap
U.S. Treasury yields fell from multi-month highs on Friday as investors consolidated positions after a week-long run-up, with the market having fully priced in the shift in the Federal Reserve's monetary policy outlook to a gradual easing path.
U.S. two-year yields slid from a 2-1/2-month high, while those on the three-year , five-year , and seven-year notes dropped from nearly three-month peaks.
Commodities Recap
Gold prices were set for a weekly gain on Friday, buoyed by a softer dollar and safe-haven demand from escalating tensions in the Middle East, even as U.S. Federal Reserve officials bruised hopes of early rate cuts this year.
Spot gold was up 0.8% to $2,040.69 per ounce as of 01:51 p.m. ET (1851 GMT), and was on track for a 1.4% weekly rise.U.S. gold futures settled 0.9% higher at $2,049.4.
Oil prices fell nearly 3% lower on Friday and posted a weekly decline after a U.S. central bank policymaker indicated interest rate cuts could be delayed by at least two more months.
Brent crude futures settled down $2.05, or 2.5%, at $81.62 a barrel, while U.S. West Texas Intermediate crude futures (WTI) were down $2.12, or 2.7%, to $76.49.
