Market Roundup
•Canada Dec Wholesale Sales (MoM) 0.3%, 0.7% forecast,0.9% previous
•US Jan PPI (YoY) 0.9%,0.6% forecast, 1.0% previous
•US Jan PPI ex. Food/Energy/Transport (YoY) 2.6%,2.5% previous
•US Jan PPI ex. Food/Energy/Transport (MoM) 0.6%,0.2% previous
•US Jan Building Permits 1.470M, 1.509M forecast,1.493M previous
•US Jan Building Permits (MoM) -1.5%,1.8% previous
•Canada Dec Foreign Securities Purchases by Canadians 29.40B, 12.53B previous
•Canada Dec Foreign Securities Purchases 10.44B,-6.45B forecast,11.43B previous
•13:30 US Jan Core PPI (MoM) 0.5%,0.1% forecast,0.0% previous
•US Jan PPI (MoM) 0.3%,0.1% forecast,-0.1% previous
•US Jan Housing Starts (MoM) -14.8%,-4.3% previous
•US Jan Core PPI (YoY) 2.0%,1.6% forecast,1.8% previous
•US Jan Housing Starts 1.331M, 1.450M forecast,1.460M previous
•US Feb Michigan 5-Year Inflation Expectations 2.9%,2.9% previous
•US Feb Michigan 1-Year Inflation Expectations 3.0%,2.9% previous
•US Feb Michigan Consumer Expectations 78.4,76.5 forecast, 77.1 previous
•US Feb Michigan Consumer Sentiment 79.6, 80.0 forecast,79.0 previous
•US Feb Michigan Current Conditions 81.5, 82.0 forecast,81.9 previous
•US Atlanta Fed GDPNow (Q1) 2.9%,2.9% forecast, 2.9% previous
• U.S. Baker Hughes Oil Rig Count 497,499 previous
•U.S. Baker Hughes Total Rig Count 621, 623 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 initially dipped but recovered some ground as investors digested hotter-than-expected producer prices report. A Labor Department report showed producer prices increased more than expected in January, feeding fears inflation was picking up after months of cooling. After five consecutive weeks of gains, all three indexes posted a weekly decline.The rise in producer prices reported by the Labor Department was the largest in five months and followed a hotter-than-expected report on Tuesday for consumer prices last month. Two Fed officials expressed caution. Atlanta Fed President Raphael Bostic said he needed more evidence inflation pressures are easing, but is open to lowering rates at some point in the next few months. San Francisco Fed President Mary Daly said "there is more work to do to ensure stable prices, despite remarkable progress. The euro gained 0.04% to $1.0775. Immediate resistance can be seen at 1.0795(38.2%fib), an upside break can trigger rise towards 1.0837(50%fib).On the downside, immediate support is seen at 1.0734(23.6%fib), a break below could take the pair towards 1.0705(Lower BB).
GBP/USD: The pound dipped on Friday despite data indicating that UK retail sales increased at their quickest rate in almost three years in January, above expectations, but did nothing to change views about Bank of England (BoE) monetary policy. According to the Office for National Statistics, retail sales increased by 3.4% month on month in January, compared to a 1.5% gain predicted by a survey. The increase was the largest since April 2021. Sterling was last down trading at $1.2598, having traded around $1.25815 prior to the numbers. For the week so far, the pound is on track to log its first weekly decline against the euro in two months, with a 0.1% dip, while against the dollar, it is set for a 0.2% decline. Immediate resistance can be seen at 1.2602(38.2%fib), an upside break can trigger rise towards 1.2688 (50%fib).On the downside, immediate support is seen at 1.2542(38.2%fib), a break below could take the pair towards 1.2503(Lower BB).
USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Friday as long-term borrowing costs rose and domestic data showed wholesale trade rising less than analysts had expected . U.S. producer prices increased more than expected in January, affirming expectations the Federal Reserve will hold off the start of its interest rate-cutting cycle to the middle of the year.Canada's economy could particular benefit from lower rates after households borrowed heavily during the pandemic.Canadian wholesale trade rose 0.3% in December from November, falling short of the 0.8% gain that economists had expected. The price of oil, one of Canada's major exports, rose for a second straight day, supported by geopolitical tensions. U.S. crude futures were up 0.9% at $78.72 a barrel. Immediate resistance can be seen at 1.3511 (38.2%fib), an upside break can trigger rise towards 1.3555 (Higher BB).On the downside, immediate support is seen at 1.3448(50%fib), a break below could take the pair towards 1.3389 (61.8%fib).
USD/JPY: The dollar strengthened against yen on Friday after data showed U.S. producer prices increased more than expected in January, adding to the view that any interest rate cuts by the Federal Reserve are not imminent. The producer price index for final demand rose 0.3% last month after declining by a revised 0.1% in December, the Labor Department's Bureau of Labor Statistics said. Economists polled by Reuters had forecast the PPI rebounding 0.1% following a previously reported 0.2% drop. The yen weakened 0.22% to 150.23 per dollar.The yen has touched 150 the last few days, putting the market on high alert to a possible intervention by Japanese authorities to weaken the yen.Strong resistance can be seen at 150.88 (23.6%fib) an upside break can trigger rise towards 151.33(Higher BB).On the downside, immediate support is seen 150.00(Psychological level), a break below could take the pair towards 149.59(38.2%fib )
Equities Recap
European shares ended a data-packed week on an upbeat note with stellar earnings updates and hopes of imminent rate cuts by the European Central Bank lifting investors' appetite for risky assets.
UK's benchmark FTSE 100 closed up by 1.50 percent, Germany's Dax ended up by 0.42 percent, France’s CAC finished the day up by 0.32 percent.
U.S. stocks fell on Friday with the Nasdaq showing the largest decline after a hotter-than-expected producer prices report eroded hopes for imminent interest rate cuts by the Federal Reserve.
Dow Jones closed down by 0.37 %percent, S&P 500 closed down by 0.48% percent, Nasdaq settled down by 0.82 % percent.
Commodities Recap
Gold ticked up on Friday but was on course for a second straight weekly fall after hot inflation data cooled prospects of early rate cuts by the Federal Reserve.
Spot gold was up 0.4% to $2,012.86 per ounce at 01:45 p.m. ET (1845 GMT), but has lost 0.6% for the week so far.U.S. gold futures settled 0.5% higher to $2024.1.
Oil prices settled higher on Friday as geopolitical tensions in the Middle East more than offset a forecast from the International Energy Agency for slowing demand.
Brent crude futures settled up 61 cents, or 0.74% at $83.47 a barrel. U.S. West Texas Intermediate crude settled $1.16, or 1.49%, higher at $79.19 with the nearby March contract expiring on Tuesday. The April contract rose 87 cents to $78.46.
