Market Roundup
• UK April Industrial Production (MoM) -20.3%,-15.0% forecast, -4.2% previous
• UK GDP (MoM) -20.4%,-18.7% forecast, -5.8% previous
• UK GDP Index of Services -9.9% , -1.9% previous
• UK Monthly GDP 3M/3M Change-10.4%,-10.0% forecast, -2.0% previous
• UK GDP (YoY) -24.5%,-22.3% forecast, -5.7% previous
• UK April Trade Balance Non-EU -2.66B, -4.00B forecast, -4.88B previous
• UK April Trade Balance -7.49B, -11.62B forecast, -12.51B previous
• UK April Industrial Production (YoY) -24.4%, -19.3% forecast, -8.2% previous
• UK Manufacturing Production (YoY) -28.5%,-19.9% forecast, -9.7% previous
• U.K. April Construction Output (YoY) -44.0%,-36.2% forecast, -7.1% previous
• U.K April Manufacturing Production (MoM) -24.3%, -15.8% forecast ,-4.6% previous
• U.K April Construction Output (MoM) -40.1%,-25.0% forecast, -5.9% previous
• French CPI (YoY) 0.4%,0.2% forecast, 0.2% previous
• French May CPI (MoM) 0.1% , 0.0% forecast, 0.0% previous
• French May HICP (MoM) 0.2%,0.1% forecast, 0.0% previous
• EU April Industrial Production (MoM) -17.1%,-20.0% forecast, -11.3% previous
• EU April Industrial Production (YoY) -28.0%, -29.5% forecast, -12.9% previous
•Portuguese May CPI (YoY) -0.7%,-0.7% forecast, -0.7% previous
Looking Ahead – Economic Data (GMT)
• 12:30 US Import Price Index (YoY) -6.8% previous
• 12:30 US Export Price Index (YoY) -7.0% previous
• 12:30 US May Export Price Index (MoM) 0.6% forecast, -3.3%- previous
• 12:30 US May Import Price Index (MoM) 0.6% forecast, -2.6% previous
• 12:30 Canada Capacity Utilization Rate (Q1) 80.0% forecast, 81.2% previous
• 12:30 UK NIESR GDP Estimate -11.8% previous
• 14:00 US June Michigan Consumer Expectations 70.0 forecast, 65.9 previous
• 14:00 US June Michigan Consumer Sentiment 75.0 forecast, 72.3 previous
• 14:00 US June Michigan Current Conditions 85.0 forecast, 82.3 previous
•14:00 US June Michigan 5-Year Inflation Expectations 2.70% previous
•18:00 US U.S. Baker Hughes Total Rig Count 284 previous
Looking Ahead - Events, Other Releases (GMT)
• 17:00 US FOMC Member Barkin Speaks
Fxbeat
EUR/USD: The euro edged up against the U.S. dollar on Friday, not far from the three-month high it rose to earlier in the week, as traders paused from cashing in latest profits, reversing the sell-off seen in the Asian trading session. Investors had earlier decided to unwind their positions after a rapid build-up of bets on risk assets that had taken off on hopes of further reopening of economies. But hopes of a post-COVID global recovery, the easing of U.S.-China trade tensions and the prospect of capped long-term yields in the United States weighed on the U.S. dollar Immediate resistance can be seen at 1.1343 (Daily high), an upside break can trigger rise towards 1.1420 (Higher BB).On the downside, immediate support is seen at 1.1262 (11 DMA), a break below could take the pair towards 1.1200 (Psychological level).
GBP/USD: The pound was stronger against a weaker dollar on Friday as a combination of stronger appetite for risk assets, record low economic data and Brexit risks continued to weigh on the British currency. The pound had a disappointing week, slipping back after it had risen 3.9% against the dollar in 10 consecutive days of gains starting on May 28 - its longest winning streak since January 2018.But sterling recovered on Friday up 0.2% against the dollar at $1.2631 as investors returned to risk assets. Immediate resistance can be seen at 1.2673 (5 DMA), an upside break can trigger rise towards 1.2773(23.6% fib).On the downside, immediate support is seen at 1.2512 (38.2% fib), a break below could take the pair towards 1.2419 (21 DMA).
USD/CHF: The dollar gained against the Swiss franc on Friday as rising coronavirus infections and fears of a new wave globally sent dollar higher against swiss franc. Number of new COVID-19 cases rose at an alarming rate in some countries and others reports re-infection, economic indicators from around the globe show the impact of lockdowns, forcing countries to resume economic activity. Immediate resistance can be seen at 0.9488 (5 DMA), an upside break can trigger rise towards 0.9535(50% fib).On the downside, immediate support is seen at 0.9447 (38.2% fib), a break below could take the pair towards 0.9341 (23.6% fib).
USD/JPY: The dollar strengthened against the Japanese yen on Friday as fears that a resurgence of COVID-19 infections could stunt the pace of reopening economies decreased demand for yen. The U.S. Federal Reserve released a gloomy economic outlook at the end of its two-day monetary policy meeting on Wednesday. Chairman Jerome Powell warned of a “long road” to recovery. Economic data appeared to back up the Fed’s projections, with jobless claims still more than double their peak during the Great Recession and continuing claims at an astoundingly high 20.9 million. Strong resistance can be seen at 107.54 (5 DMA), an upside break can trigger rise towards 108.11 (38.2 % fib).On the downside, immediate support is seen at 106.76 (50% fib), a break below could take the pair towards 106.50 (Lower BB).
Equities Recap
European shares rose on Friday as cyclical stocks gained after a sharp selloff in the previous session on worries over the pace of an economic recovery from the COVID-19 crisis.
At (GMT 12:10),UK's benchmark FTSE 100 was last trading up at 0.83 percent, Germany's Dax was up by 0.38 percent, France’s CAC finished was up by 1.35 percent.
Commodities Recap
Gold rose on Friday as fears regarding the resurgence of coronavirus infections and grim economic outlook by the U.S. Federal Reserve boosted demand for bullion, leading the metal towards its biggest weekly gain since early-April.
Spot gold gained 0.3% to $1,732.91 per ounce by 1008 GMT, and has jumped about 2.8% so far this week, which could be its biggest gain since the week of April 10. U.S. gold futures eased 0.1% to $1,738.60.
Oil prices edged higher on Friday but were on track for their first weekly fall in seven as new U.S. coronavirus cases spiked, raising the prospect of a second wave hitting demand.
Brent was up 27 cents, or 0.7%, at $38.82 a barrel by 1204 GMT, having lost more than $1 earlier in the session.After falling more than 5% on Friday, West Texas Intermediate was up 19 cents, or 0.52% to $36.53 a barrel. Both contracts ended around 8% lower on Thursday.
