Market Roundup
•UK Sep Retail Sales (MoM) -0.2%,0.5% forecast, -0.9% previous
•UK Sep Core Retail Sales (MoM) -0.6%,0.2% forecast, -1.2% previous
•UK Sep Core Retail Sales (YoY) -2.6%,-1.7% forecast, -0.9% previous
•UK Sep Retail Sales (YoY) -1.3%, -0.4% forecast, 1.9% previous
•French Oct Manufacturing PMI 53.5,54.0 forecast, 55.0 previous
•French Oct Services PMI 56.6 ,55.5 forecast, 56.2 previous
•French Oct Markit Composite PMI 54.7,54.7 forecast, 55.3 previous
•German Oct Services PMI 52.4,55.0 forecast, 56.2 previous
•German Oct Manufacturing PMI 58.2, 56.5 forecast, 58.4 previous
•EU Oct Manufacturing PMI 58.2,57.0 forecast, 58.6 previous
•EU Oct Services PMI 54.7,55.5 forecast, 56.4 previous
•EU Oct Markit Composite PMI 54.3,55.2 forecast, 56.2 previous
•UK Oct Composite PMI 56.8,54.9 previous
•UK Oct Services PMI 58.0,55.4 previous
•UK Oct Manufacturing PMI 57.7,57.1 previous
Looking Ahead Economic Data (GMT)
•12:30 Canada Aug Core Retail Sales (MoM) 2.8% forecast, -1.0% previous
•12:30 Canada Aug Retail Sales (MoM) 2.0% forecast, -0.6% previous
•13:45 US Oct Markit Composite PMI 55.0 previous
•13:45 US Oct Manufacturing PMI 60.3 forecast, 60.7 previous
•13:45 US Oct Services PMI 55.1 forecast, 54.9 previous
•17:00 U.S. Baker Hughes Total Rig Count 543 previous
•17:00 U.S. U.S. Baker Hughes Oil Rig Count 445 previous
Looking Ahead - Events, Other Releases (GMT)
•14:00 US FOMC Member Daly Speaks
•15:00 US Fed Chair Powell Speaks
•15:00 US Fed Chair Powell Speaks
Fxbeat
EUR/USD: The euro strengthen against dollar on Friday after data showed Euro zone inflation hit ECB target of 2%.The five-year, five-year forward inflation swap, a key market gauge of long-term euro zone inflation expectations, jumped four basis points on Friday to hit its highest since September 2014 and the bloc’s target at 2.0029%. The euro was up 0.08% at $1.1630, still close to Tuesday’s three-week peak of $1.1670. Immediate resistance can be seen at 1.1658 (38.2%fib), an upside break can trigger rise towards 1.1708(50%fib).On the downside, immediate support is seen at 1.1592 (23.6%fib), a break below could take the pair towards 1.1500(Psychological level).
GBP/USD: The British pound dipped slightly on Friday after weaker-than-expected retail sales numbers but remained close to recent highs after recent survey data and policymaker comments underlined the threat of further inflationary pressure.British sales volumes dropped by 0.2% in September, official figures showed on Friday, bucking economists’ expectations in a Reuters poll for a monthly rise of 0.5%.That miss coincided with more signs of rising inflation. Immediate resistance can be seen at 1.3803(23.6%fib),an upside break can trigger rise towards 1.3856(Higher BB).On the downside, immediate support is seen at 1.3726(38.2%fib), a break below could take the pair towards 1.3687(50%fib).
USD/CHF: The dollar dipped against Swiss franc on Friday following overnight U.S. jobless claims data. Data showed that the number of Americans filing new claims for unemployment benefits dropped to a 19-month low last week, pointing to a tightening labor market, though a shortage of workers could keep the pace of hiring moderate in October. Immediate resistance can be seen at 0.9204(38.2%fib), an upside break can trigger rise towards 0.9213(50DMA).On the downside, immediate support is seen at 0.9163(23.6%fib), a break below could take the pair towards 0.9148(Higher BB).
USD/JPY: The dollar dipped against yen on Friday as a weaker U.S. dollar and growing inflationary pressure increased demand for safe haven yen. The dollar index , which gauges the greenback against six major rivals, was down 0.1% to 93.634, despite initially bouncing off recent lows after U.S. jobless claims fell to a 19-month low. The U.S. Federal Reserve has signalled it could start to taper stimulus as soon as next month, with rate hikes to follow late next year. Full employment is among the Fed's stated requirements for rates lift-off. Strong resistance can be seen at 114.24(38.2%fib), an upside break can trigger rise towards 114.70(23.6%fib).On the downside, immediate support is seen at 113.73(50%fib), a break below could take the pair towards 113.33(61.8%fib).
Equities Recap
European stocks rose on Friday to trade near six-week highs as a surprise interest payment by debt-ridden China Evergrande Group lifted the mood, while a surge in technology stocks and strong earnings from France’s L’Oreal provided further support.
At (GMT 12:15 ),UK's benchmark FTSE 100 was last trading up at 0.56 percent, Germany's Dax was up by 0.78 % percent, France’s CAC was last up by 0.97 percent.
Commodities Recap
Gold prices gained for a fourth consecutive session on Friday, and were on track for a second straight weekly gain as a weaker U.S. dollar and growing inflationary pressure boosted demand for the safe-haven metal.
Spot gold rose 0.6% to $1,793.59 per ounce by 1130 GMT, and was up 1.4% for the week.
Oil prices stayed near multi-year highs on Friday, erasing some earlier losses in Asian trading hours, with concerns about tight supply and stockpiles fuelling bullish sentiment.
Brent crude futures rose 23 cents, or 0.3%, to $84.84 a barrel at 0933 GMT, after Thursday's three-year high of $86.10. The benchmark is set for its seventh weekly gain.
U.S. West Texas Intermediate (WTI) crude futures gained 20 cents, or 0.2%, to reach $82.70 a barrel, not far off a seven-year high hit this week.
