Market Roundup
• Canada Housing Starts (Dec): 282.4K, 257.0K forecast, 254.6K previous.
•Canada Foreign Securities Purchases (Nov): 16.33B, 24.61B forecast, 46.62B previous.
•Canada Foreign Securities Purchases by Canadians (Nov): 16.490B, N/A forecast, -11.580B previous.
•US Industrial Production (YoY) (Dec): 1.99%, N/A forecast, 2.68% previous.
•US Industrial Production (MoM) (Dec): 0.4%, 0.1% forecast, 0.4% previous.
•US Manufacturing Production (MoM) (Dec): 0.2%, -0.2% forecast, 0.3% previous.
•US Capacity Utilization Rate (Dec): 76.3%, 76.0% forecast, 76.1% previous.
•US NAHB Housing Market Index (Jan): 37, 40 forecast, 39 previous.
Looking Ahead Economic Data (GMT)
•No Data Ahead
Looking Ahead Economic Data (GMT)
• No Events Ahead
Currency Forecast
EUR/USD : The euro slipped lower on Friday as dollar gained after U.S. President Donald Trump praised economic adviser Kevin Hassett at a White House event and said he may want to keep him in his current role, prompting speculation he is less likely to be named as chair of the Federal Reserve.Trump is expected to name his candidate to succeed Jerome Powell in the coming weeks, with Powell's term due to end in May. The leading four candidates for the role are Hassett, Fed Governor Christopher Waller, former Fed Governor Kevin Warsh and BlackRock's chief bond investment manager Rick Rieder.The dollar index =USD, which measures the greenback against a basket of currencies including the yen and the euro,rose 0.06% to 99.41, with the euro EUR= down 0.1% at $1.1594.. Immediate resistance can be seen at 1.1653(Jan 15th high), an upside break can trigger rise towards 1.1690(50%fib).On the downside, immediate support is seen at 1.1600(38.2%fib), a break below could take the pair towards 1.1553(Lower BB).
GBP/USD: Sterling initially firmed but gave up ground against dollar investors digested this week upbeat UK data and awaited fresh catalyst for further direction.Data on Thursday showed UK gross domestic product recorded the fastest growth in November since June, boosted by a return to full production at Jaguar Land Rover after a cyberattack that hit the carmaker and its suppliers.Investors continued to almost fully price in two quarter-point interest rate cuts by the Bank of England this year. But markets are not fully pricing in a 25-basis-point reduction until June, and they see only a 6% chance of a cut when the central bank meets next month. Immediate resistance can be seen at 1.3460(38.2%fib), an upside break can trigger rise towards 1.3496(Jan 12th high).On the downside, immediate support is seen at 1.3370(50%fib), a break below could take the pair towards 1.3331(Lower BB).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Friday as investors weighed Canada–China trade developments and Fed leadership prospects. Trump praised Kevin Hassett at the White House, signaling he may keep him in his current role as he weighs his pick for the next Fed chair. Canada and China reached an initial trade deal to cut tariffs on electric vehicles and canola, with both sides pledging to ease trade barriers and deepen strategic ties, Prime Minister Carney said. The price of oil one of Canada's major exports, settled 0.4% higher at $59.44 a barrel on. Domestic data showed that housing starts increased 11% in December from November at a seasonally adjusted annualized rate, beating estimates. Immediate resistance can be seen at 1.3950 (50%fib), an upside break can trigger rise towards 1.3965 (Higher BB).On the downside, immediate support is seen at 1.3872(61.8%fib), a break below could take the pair towards 1.3799(SMA 20).
USD/JPY: The U.S. dollar dipped on Friday as yen firmed amid lingering intervention risks tied to excessive Yen weakness. Japanese Finance Minister Katayama said all options remain on the table to address the yen’s slide to a 1½-year low.Japan’s markets face uncertainty as PM Takaichi dissolves parliament and the central bank prepares for a policy decision.PM Takaichi is expected to brief ruling bloc officials on Jan. 19 about the dissolution of the lower house.The Japanese currency has fallen on expectations that Prime Minister Sanae Takaichi may have more leeway to introduce more fiscally expansionist policies pending a snap election expected early next month. Warnings from Japanese policymakers that they stand ready to act against one-way movements in foreign exchange markets have given the yen brief boosts. Immediate resistance can be seen at 159.21(23.6%fib) an upside break can trigger rise towards 160.00(Psychological level) .On the downside, immediate support is seen at 157.22(SMA 20) a break below could take the pair towards 156.87 (38.2%fib).
Equities Recap
European shares ended subdued on Friday as losses in luxury and mining stocks capped gains, closing a week marked by earnings season kicks off and lingering geopolitical concerns..
UK's benchmark FTSE 100 closed down by 0.04 percent, Germany's Dax ended down by 0.22 percent, France’s CAC finished the day down by 0.65percent.
U.S. stocks finished nearly flat in choppy trade on Friday, with all three major indexes ending the week lower as Q4 earnings season began.
Dow Jones closed down by 0.17 % percent, S&P 500 closed down by 0.06 % percent, Nasdaq settled down by 0.06% percent
Commodities Recap
Oil settled higher on Friday as traders covered short positions ahead of the U.S. holiday weekend and lingering concerns over a potential strike on Iran supported prices.
Brent crude settled at $64.13 a barrel up 37 cents or 0.58%. U.S. West Texas Intermediate finished at $59.44 a barrel up 25 cents, or 0.42%.
Gold dropped over 1% on Friday as profit-taking followed recent record highs, while easing geopolitical tensions reduced safe-haven demand.
Spot gold was down 0.5% at $4,592.29 per ounce as of 01:39 p.m. ET (1839 GMT), after falling as low as $4,536.49 earlier in the session.
