Market Roundup
• US Sep Michigan Current Conditions 77.1, 78.5 previous
• US Sep Michigan Consumer Expectations 67.1, 65.1 previous
• US Sep Michigan Consumer Sentiment 71.0, 72.0 forecast, 70.3 previous
• US Sep Michigan 5-Year Inflation Expectations 2.90%,2.90% previous
• US Sep Michigan Inflation Expectations 4.7%,4.6% previous
• U.S Baker Hughes Total Rig Count 512,497 previous
• U.S Baker Hughes Oil Rig Count 411,394 previous
Looking Ahead –Economic Data (GMT)
•No significant events
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Fxbeat
EUR/USD: The euro declined against dollar on Friday as dollar continued to benefit from better-than-expected U.S. retail sales data released on Thursday that backed expectations for a reduction of asset purchases by the Federal Reserve before the end of the year. The dollar index, a gauge of the greenback's value against six major currencies, rose to 93.094, its highest since late August. It was last up 0.2% at 93.062.The Fed holds a two-day monetary policy meeting next week and is expected to open discussions on reducing its monthly bond purchases, while tying any actual change to U.S. job growth in September and beyond. Immediate resistance can be seen at 1.1746 (38.2%fib), an upside break can trigger rise towards 1.177623.6%fib).On the downside, immediate support is seen at 1.1719(50%fib), a break below could take the pair towards 1.1694 (61.8%fib).
GBP/USD: Sterling hit fresh lows against a broadly stronger dollar on Friday as some investment banks brought forward their forecast for Bank of England rate rise. British retail sales volumes unexpectedly fell last month in their longest streak of declines since current records began, though they remain above pre-pandemic levels. Sterling hit a multi-week high versus the dollar on Tuesday as data showed that underlying U.S. consumer prices increased at their slowest pace in six months in August. Immediate resistance can be seen at 1.3811(38.2%fib),an upside break can trigger rise towards 1.3873 (23.6%fib).On the downside, immediate support is seen at 1.3696(61.8%fib), a break below could take the pair towards 1.3714(Lower BB).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Friday as commodity prices fell and investors adjusted their positions ahead of a Canadian federal election, with the currency losing ground for a second week. Oil, one of Canada's major exports, settled 0.9% lower at $71.97 a barrel, while copper was down 0.7%. The Canadian dollar was trading 0.5% lower at 1.2746 to the greenback , after touching its weakest level since Aug. 23 at 1.2762. For the week, the currency was down 0.4%, adding to its decline from the prior week. Immediate resistance can be seen at 1.2776 (23.6%fib), an upside break can trigger rise towards 1.2830(23rd Aug high).On the downside, immediate support is seen at 1.2686 (38.2%fib), a break below could take the pair towards 1.2617 (50%fib).
USD/JPY: The dollar strengthened against yen on Friday as strong U.S. retail sales data buoyed the dollar. Retail sales rose 0.7% last month. Data for July was revised down to show retail sales declining 1.8% instead of 1.1% as previously reported. Economists polled had forecast retail sales would drop 0.8%. Sales increased 15.1% from a year ago and are 17.7% above their pre-pandemic level. The dollar rose to 109.84 yen, having gained 0.34% on Thursday to rise off Wednesday’s six-week low of 109.11.Strong resistance can be seen at 110.14(23.6%fib), an upside break can trigger rise towards 110.41(Higher BB).On the downside, immediate support is seen at 109.73(50%fib), a break below could take the pair towards 109.42(50%fib).
Equities Recap
European stocks fell on Friday, capping their third straight week in the red as the basic resources sector was hit by declines in Anglo American, but news that Britain was mulling easing travel restrictions boosted airlines and hotel groups.
UK's benchmark FTSE 100 closed down by 0.91 percent, Germany's Dax ended down by 1.03 percent, France’s CAC finished the day up by 0.79 percent.
U.S. stocks ended sharply lower in a broad sell-off on Friday, ending a week buffeted by strong economic data, corporate tax hike worries, the Delta COVID variant, and possible shifts in the U.S. Federal Reserve’s timeline for tapering asset purchases.
Dow Jones closed was last trading down by 0.48 percent, S&P 500 was last down by 0.91 percent, Nasdaq was down by 0.91 percent
Treasuries Recap
U.S. government bond yields edged up on Friday, with the 10-year yield touching a two-month high, as traders look ahead to a busy week of central bank meetings including a key one at the Federal Reserve.
The 10-year yield briefly touched 1.3855%, its highest level since July 14, and was set for a fourth consecutive week of increases, the longest such streak since March.
Commodities Recap
Gold’s slight rebound on Friday from a sharp selloff in the previous session lost steam as the dollar gained, putting it on course for a second weekly dip with investors focused on the U.S. Federal Reserve’s tapering strategy.
Spot gold was down 0.1% at $1,751.29 per ounce by 1:31 pm EDT (1731 GMT). U.S. gold futures settled 0.3% lower at $1,751.4.
Oil prices fell on Friday as energy companies in the U.S. Gulf of Mexico restarted production after back-to-back hurricanes in the region shut output.
Brent crude futures fell 33 cents to settle at $75.34 a barrel. U.S. West Texas Intermediate (WTI) crude futures fell 64 cents to settle at $71.97 a barrel.For the week, Brent was up 3.3% and U.S. crude was up 3.2%, supported bytight supplies due to the hurricane outages.
