Market Roundup
• China CPI (YoY) (Dec): 0.8%, 0.8% forecast, 0.7% previous.
• China CPI (MoM) (Dec): 0.2%, -0.1% previous.
• China PPI (YoY) (Dec): -1.9%, -2.0% forecast, -2.2% previous.
• Japan Leading Index (MoM) (Nov): 0.7%, 1.8% forecast, 0.9% previous.
• Japan Coincident Indicator (MoM) (Nov): -0.7%, 0.5% forecast, 1.0% previous.
• German Industrial Production (MoM) (Nov): 0.8%, -0.6% forecast, 2.0% previous.
Looking Ahead Economic Data (GMT)
•08:00 Swiss SECO Consumer Climate (Dec): -34 previous
•08:00 Swiss Unemployment Rate n.s.a. (Dec): 2.9% previous
•08:00 Swiss Unemployment Rate s.a. (Dec): 3.0% forecast, 3.0% previous.
•08:00 Swiss Foreign Reserves (USD) (Dec): 7,27,386.0B previous.
•08:00 French Industrial Production (MoM) (Nov)-0.2% forecast, 0.2% previous.
Looking Ahead Events And Other Releases (GMT)
•No Events Ahead
Currency Forecast
EUR/USD : The euro dipped against the dollar on Friday as markets awaited a U.S. jobs report.The looming U.S. non-farm December payrolls report will dispel much of the data fog resulting from a recent government shutdown, but analysts said nuances in the data may do little to clarify the path for interest rates.Thursday's weekly jobless claims data showed a marginal increase in applications for unemployment benefits.Fed funds futures are pricing an implied probability of 86% that the central bank holds interest rates at its next two-day meet on January 27 and 28, up from 68% a month ago, the CME Group's FedWatch tool shows. Immediate resistance can be seen at 1.1716(38.2%fib), an upside break can trigger rise towards 1.1730(SMA 20).On the downside, immediate support is seen at 1.1646(50%fib), a break below could take the pair towards 1.1600(Psychological level).
GBP/USD: Sterling dipped on Friday as the U.S. dollar remained firm ahead of the crucial U.S. jobs report.Economists expect modest job growth of 60,000 and a slight drop in the unemployment rate to 4.5% from 4.6%. Second-tier labour data on Wednesday provided little direction, as private-sector job growth rebounded less than expected in December, while the ISM services employment index climbed to its highest level in nearly a year.Meanwhile, the Job Openings and Labor Turnover Survey (JOLTS) showed that job openings in November came in well below forecasts, even as layoffs declined sharply.Immediate resistance can be seen at 1.3453(SMA20), an upside break can trigger rise towards 1.3497(38.2%fib).On the downside, immediate support is seen at 1.3389(50%fib), a break below could take the pair towards 1.3346(Lower BB).
AUD/USD: The Australian dollar eased on Friday in subdued trading as markets look towards U.S. jobs data. Nonfarm payrolls probably increased by 60,000 jobs last month after rebounding by 64,000 in November, a survey of economists estimated. The economy lost 105,000 jobs in October, the largest decrease in nearly five years, mostly federal government employees who took deferred buyouts. Traders are pricing in at least two rate cuts from the Federal Reserve this year, although a divided central bank indicated in December there would be only one cut in 2026.The Australian dollar was modestly lower at $0.6698, having eased 0.3% overnight to mark a second day of declines from the 15-month peak of $0.6766. Immediate resistance can be seen at 0.6705(Daily high), an upside break can trigger rise towards 0.6748(23.6%fib).On the downside, immediate support is seen at 0.6676(SMA 20), a break below could take the pair towards 0.6664(38.2%fib)
USD/JPY: The dollar rose against the yen a traders look ahead to U.S. labour market data later in the day for indications on the Federal Reserve's policy trajectory. The U.S. nonfarm payrolls report for December is expected to dispel much of the data fog that persisted during the government shutdown, as well as provide clues on the Federal Reserve's monetary policy path.Markets were also awaiting a possible U.S. Supreme Court ruling on tariffs, where a strike-down could add to uncertainty and fuel further market volatility.The U.S. Supreme Court could issue a ruling later in the day determining whether Trump can invoke the International Emergency Economic Powers Act (IEEPA) to impose tariffs without the approval of Congress. Immediate resistance can be seen at 157.58(23.6%fib) an upside break can trigger rise towards 158.00(Psychological level) .On the downside, immediate support is seen at 156.28 (SMA 20) a break below could take the pair towards 155.22 (38.2%fib).
Equities Recap
Asian markets advanced on Friday as investors looked ahead to the release of key U.S. jobs data and a potential Supreme Court ruling on Donald Trump’s broad global tariffs.
China’s A50 up 0.17%, Japan’s Nikkei 225 was up by 1.60% ,South Korea’s KOSPI was up at 0.75%
Commodities Recap
Gold slipped on Friday as commodity index rebalancing and a firm U.S. dollar weighed on prices, with investors positioning ahead of the crucial U.S. nonfarm payrolls report due later in the day.
Spot gold edged 0.2% lower to $4,469.03 per ounce as of 0536 GMT, though it was set for a more than3% weekly gain. Bullion hit a record high of $4,549.71 on December 26.
U.S. gold futures for February delivery firmed 0.4% to $4,477.70.
Oil prices climbed for a second straight day on Friday, rising over 1% and heading for a third weekly gain, driven by uncertainty over Venezuelan supply and growing concerns about Iranian output amid rising unrest.
Brent futures gained 83 cents, or 1.3%, to $62.82 per barrel at 0730 GMT, while U.S. West Texas Intermediate (WTI) crude climbed 76 cents, or 1.3%, to $58.52.
