Posted at 18 January 2025 / Categories Market Roundups
Market Roundup
• US Building Permits (Dec) 1.483M, 1.460M forecast, 1.493M previous
•US Building Permits (MoM) (Dec) -0.7%, 5.2% previous
•US Housing Starts (MoM) (Dec) 15.8%, -3.7% previous
•US Housing Starts (Dec) 1.499M, 1.330M forecast, 1.294M previous
•Canada Foreign Securities Purchases (Nov) 16.40B, 14.50B forecast, 21.55B previous
•Canada Foreign Securities Purchases by Canadians (Nov) 17.850B, -2.650B previous
•US Capacity Utilization Rate (Dec) 77.6%, 77.0% forecast, 77.0% previous
•US Industrial Production (YoY) (Dec) 0.55%, -0.61% previous
•US Industrial Production (MoM) (Dec) 0.9%, 0.3% forecast, 0.2% previous
•US Manufacturing Production (MoM) (Dec) 0.6%, 0.2% forecast, 0.4% previous
•US Atlanta Fed GDPNow (Q4) 3.0%, 3.0% forecast, 3.0% previous
•US U.S. Baker Hughes Oil Rig Count 478, 480 previous
•US U.S. Baker Hughes Total Rig Count 580, 584 previous
Looking Ahead Economic Data(GMT)
•No Economic Data Ahead
Looking Events And Other Releases (GMT)
•No Significant Events Ahead
Currency Summaries
EUR/USD: The euro weakened against the dollar on Friday as strong U.S. economic data alleviated concerns ahead of the U.S. presidential inauguration. U.S. manufacturing output rose by 0.6% in December, following a revised 0.4% increase in November, likely due to production recovering after a factory worker strike. Additionally, U.S. single-family homebuilding reached a 10-month high in December, suggesting a pickup in construction activity toward the end of the year. However, rising mortgage rates and an oversupply of new homes could limit the recovery in the housing market. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro rose 0.37% to 109.37.The euro was down 0.25% at $1.0272. Immediate resistance can be seen at 1.0309(50%fib), an upside break can trigger rise towards 1.0360(61.8%fib).On the downside, immediate support is seen at 1.0259(38.2%fib), a break below could take the pair towards 1.0196(23.6%fib).
GBP/USD: The pound weakened on Friday after data showed that British retail sales fell unexpectedly in December, adding to an already-gloomy economic outlook. Retail sales fell by 0.3% month-on-month in December after a downwardly revised 0.1% expansion in November, the Office for National Statistics said. Friday's figures add to a run of lacklustre economic data since Reeves announced Britain's biggest tax rises since 1993 in her October budget, and boosted expectations for a Bank of England interest rate cut next month.Immediate resistance can be seen at 1.2269(38.2%fib), an upside break can trigger rise towards 1.2363(50%fib).On the downside, immediate support is seen at 1.2134(23.6%fib), a break below could take the pair towards 1.2061(Lower BB)
USD/CAD: The Canadian dollar weakened against the U.S. dollar on Friday as attention shifted to the impending U.S. presidential inauguration and the anticipated trade tariffs. Investors were also awaiting the Bank of Canada’s fourth-quarter Business Outlook Survey on Monday, which could provide insights into the likelihood of an additional interest rate cut later this month. The BoC, following a review of its pandemic response, stated it would enhance its communication and improve forecasting models to better predict future economic shocks. The loonie was trading 0.5% lower at 1.4460 per U.S. dollar, after trading in a range of 1.4383 to 1.4464. Immediate resistance can be seen at 1.4498 (38.2%fib), an upside break can trigger rise towards 1.4598(23.6%fib).On the downside, immediate support is seen at 1.4418(50%fib), a break below could take the pair towards 1.4330(61.8%fib).
USD/JPY: The U.S. dollar strengthened on Friday as the Japanese yen weakened as market attention shifted toward the upcoming Bank of Japan (BoJ) rate decision. The BoJ is now expected to raise rates during its January Monetary Policy Meeting, bringing forward its previously anticipated March timeline. This shift reflects growing optimism regarding sustained wage growth in fiscal year 2025 and a clearer outlook on U.S. policy. Additionally, the BoJ is expected to adjust its Consumer Price Index (CPI) inflation projections upward, factoring in the depreciation of the yen, rising oil prices, and increased rice costs.. Immediate resistance can be seen at 156.55 (38.2%fib) an upside break can trigger rise towards 158.38(23.6%fib). On the downside, immediate support is seen at 155.04(50%fib) a break below could take the pair towards 153.36(61.8%fib).
Equities Recap
European shares closed higher on Friday, supported by a broad rally driven by falling government bond yields and positive economic data from China.
UK's benchmark FTSE 100 closed up by 1.35 percent, Germany's Dax ended up by 1.20 percent, France’s CAC finished the day up by 1.35 percent.
U.S. stocks rallied on Friday, finishing a strong week as investors anticipated policy changes under the incoming Trump administration.
Dow Jones closed up by 0.78 percent, S&P 500 closed up by 1.00 percent, Nasdaq settled up by 1.51 percent.
Commodities Recap
Gold prices faced pressure from a rise in the U.S. dollar on Friday but were was set for a weekly gain, supported by uncertainties surrounding President Donald Trump's policies.
Spot gold eased 0.4% to $2,701.03 per ounce by 03:10 p.m. ET (2010 GMT), while U.S. gold futures settled 0.1% lower to $2,748.70.
Oil prices ended lower on Friday but still recorded their fourth consecutive weekly gain, as U.S. sanctions on Russian energy trade heightened concerns over potential oil supply disruptions.
Brent crude futures dipped 50 cents, or 0.6%, at $80.79 per barrel, but gained 1.3% this week. U.S. West Texas Intermediate crude futures lost 80 cents, or 1%, at $77.88 a barrel, having climbed 1.7% for the week.