Market Roundup
•Canada Foreign Securities Purchases (Aug) 25.92B, 11.61B forecast,26.66B previous
•Canada Foreign Securities Purchases by Canadians (Aug) 19.510B , 17.360B previous
• U.S. Baker Hughes Oil Rig Count 418,417 418 previous
•U.S. Baker Hughes Total Rig Count 548, 547 previous
Looking Ahead Economic Data (GMT)
•No Data Ahead
Looking Ahead Events And Other Releases(GMT)
•10:00 IMF Meetings
•12:00 German Buba President Nagel Speaks
•13:00 BoE Gov Bailey Speaks
•13:00 ECB President Lagarde Speaks
Currency Summaries
EUR/USD : The euro dipped on Friday as investors remained cautious amid ongoing U.S.-China trade tensions and a broad risk-off sentiment. ECB President Christine Lagarde emphasized the importance of central bank independence and cautioned that liquidity risks remain elevated, supporting a measured approach to policy. Meanwhile, U.S. President Donald Trump said his proposed 100% tariff on Chinese goods would be unsustainable, while blaming Beijing for the latest stalemate in trade talks after China tightened controls on rare earth exports. Trump also confirmed that he will meet Chinese President Xi Jinping in two weeks in South Korea a meeting he had questioned last week while expressing admiration for the Chinese leader.On the data front, Euro area annual consumer inflation increased to 2.2% in September from 2% in August, according to Eurostat data released Friday Immediate resistance can be seen at 1.1748(38.2%fib), an upside break can trigger rise towards 1.1822(Higher BB).On the downside, immediate support is seen at 1.1688(SMA 20), a break below could take the pair towards 1.1608(50%fib)
GBP/USD: The pound traded flat on Friday as risk-off sentiment and renewed U.S.-China trade tensions limited gains. The latest escalation in trade frictions between Washington and Beijing sparked concerns over global growth, prompting investors to reduce exposure to risk-sensitive asset. Bank of England officials signaled a cautious approach to interest rate cuts on Friday, citing persistent inflationary pressures. Chief Economist Huw Pill said that rates will likely need to be reduced more slowly, reflecting ongoing stubborn inflation in the economy. Monetary Policy Committee member Megan Greene added that she does not see a case for continuing to lower rates every three months, though she stopped short of saying the rate-cutting cycle is over. Earlier this week, Governor Andrew Bailey noted that the latest labor market data supported his view that underlying inflation pressures were starting to ease, providing some scope for a gradual approach to monetary easing. Immediate resistance can be seen at 1.3543(Higher BB), an upside break can trigger rise towards 1.3567(61.8%fib).On the downside, immediate support is seen at 1.3415(SMA20), a break below could take the pair towards 1.3165(38.2%fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Friday as stocks and oil prices rose, but the currency's move was not enough to snap a weekly losing streak.Meanwhile, Senior Canadian and Chinese officials discussed bilateral trade disputes involving canola and electric vehicles on Friday, Ottawa said, but gave no indication of any immediate breakthrough. The loonie trading 0.3% higher at 1.4015 per U.S. dollar , recovering some ground after it touched on Tuesday a six-month low at 1.4079.For the week, the currency was down 0.1%, its fourth straight weekly decline. Equity market volatility has picked up in recent days while domestic economic data has been mixed, including monthly declines for wholesale trade and manufacturing sales. Immediate resistance can be seen at 1.4070(23.6 %fib), an upside break can trigger rise towards 1.4125(Higher BB).On the downside, immediate support is seen at 1.3979(38.2%fib), a break below could take the pair towards 1.3961(SMA20).
USD/JPY: The U.S. dollar initially dipped against the Japanese yen but recovered after U.S. President Donald Trump said that a “full-scale” tariff on China would be unsustainable. Trump also confirmed on Friday that his planned meeting with Chinese President Xi Jinping remains on schedule. Meanwhile, Deputy Governor Shinichi Uchida said the Bank of Japan will continue raising interest rates if economic and price developments align with its forecasts, reaffirming the central bank’s data-driven approach to policy. He reiterated earlier comments that business sentiment in Japan is improving despite U.S. tariffs weighing on exports, signaling that conditions for another rate hike are gradually taking shape. Immediate resistance can be seen at 150.58(Daily high) an upside break can trigger rise towards 151.72 (38.2%fib) .On the downside, immediate support is seen at 149.55(50%fib) a break below could take the pair towards 149.00(Psychological level)
Equities Recap
European shares fell on Friday as signs of credit strain at U.S. regional banks rattled investors, boosting demand for safe-haven assets.
UK's benchmark FTSE 100 closed down by 0.86 percent, Germany's Dax ended down by 1.76 percent, France’s CAC finished the day downby 0.18 percent.
U.S. stocks climbed Friday after Trump’s remarks on China and reassuring quarterly results from regional banks eased credit worries.
At GMT 19:50 Dow Jones was last up at 0.63% percent, S&P 500 was last up at 0.59 % percent, Nasdaq was last up at 0.58% percent.
Commodities Recap
Gold climbed on Friday, hovering near this week’s record highs, after weak U.S. labor data fueled bets on a Fed rate cut next week.
Spot gold was up 0.4% at $3,648.55 per ounce, as of 02:25 p.m. EDT (1825 GMT), close to Tuesday's all-time high of $3,673.95.
Oil prices edged up on Friday but were on track for a weekly decline of nearly 3%, as the IEA projected a growing supply surplus and Trump and Putin scheduled another meeting to discuss Ukraine..
Brent crude futures rose 10 cents, or 0.16%, to $61.16 a barrel at 11:17 a.m. CDT (1617 GMT), while U.S. West Texas Intermediate futures were also up 10 cents, or 0.17%, at $57.56.
