Posted at 24 January 2025 / Categories Market Roundups
Market Roundup
•Canada Manufacturing Sales (MoM) (Dec) 0.6%, 0.8% previous
•Canada New Housing Price Index (MoM) (Dec) -0.1%, 0.2% forecast, 0.1% previous
•US S&P Global Manufacturing PMI 50.1, 49.8 forecast, 49.4 previous
•US S&P Global Composite PMI 52.4, 55.4 previous
•US S&P Global Services PMI 52.8, 56.4 forecast, 56.8 previous
•US Existing Home Sales (Dec) 4.24M, 4.19M forecast, 4.15M previous
•US Existing Home Sales (MoM) (Dec) 2.2%, 4.8% previous
•US Michigan 1-Year Inflation Expectations (Jan) 3.3%, 3.3% previous, 2.8%
•US Michigan 5-Year Inflation Expectations (Jan) 3.2%, 3.3% forecast, 3.0% previous
•US Michigan Consumer Expectations (Jan) 69.3, 70.2 forecast, 73.3 previous
•US Michigan Consumer Sentiment (Jan) 71.1, 73.2 forecast, 74.0 previous
•US Michigan Current Conditions (Jan) 74.0, 77.9 forecast, 75.1 previous
• U.S. Baker Hughes Oil Rig Count 472, 478 previous
Looking Ahead Economic Data(GMT)
•No Data Ahead
Looking Ahead Events And Other Releases (GMT)
• No Events Ahead
Currency Summaries
EUR/USD: The euro strengthened against the dollar on Friday as weaker dollar and upbeat Eurozone PMI data boosted euro across the board. The US dollar has suffered greatly as a result of Trump's demand for quick rate cut and his lenient stance toward China. S&P Global's HCOB preliminary composite euro zone purchasing managers' index rose from 49.6 in December to 50.2 in January, just surpassing the 50 threshold that separates expansion from contraction. Meanwhile, Germany’s private sector steadied in January, bringing a stop to a six-month recession, but France's services industry contracted further as firms faced sluggish demand and political instability. Immediate resistance can be seen at 1.0538(50%fib), an upside break can trigger rise towards 1.0621(6.8%fib).On the downside, immediate support is seen at 1.0453(38.2%fib), a break below could take the pair towards 1.0348(23.6%fib).
GBP/USD: The pound rallied against the dollar on Friday as a lack of concrete tariff policies during U.S. President Trump’s first week in office put pressure on the greenback. In an interview published late Thursday, Trump expressed confidence in reaching a trade deal with China and emphasized his preference to avoid tariffs, though he also referred to them as a "tremendous power." The uncertainty surrounding Trump's tariff policies influenced currency markets this week, leading to a broad selloff of the dollar. His latest comments suggest that tariffs may be used more as a negotiation tool, signaling that some of the trade policies markets had expected might not come to fruition. Sterling advanced 1.04% to $1.2479 and was poised for a rise of 2.58% for the week. Immediate resistance can be seen at 1.2509(38.2%fib), an upside break can trigger rise towards 1.2663(61.8%fib).On the downside, immediate support is seen at 1.2352(38.2%fib), a break below could take the pair towards 1.2172(23.6%fib)
USD/CAD: The Canadian dollar strengthened against the U.S. dollar on Friday, extending its weekly gain, as a lack of new details on proposed U.S. tariffs weighed on the greenback. President Trump has threatened to impose sweeping tariffs, including a 25% tax on goods imported from Canada. Meanwhile, oil prices, a key Canadian export, settled slightly higher at $74.66 a barrel but were down for the week after Trump announced plans to boost domestic production and urged OPEC to lower crude prices. A preliminary estimate showed Canadian factory sales likely rose 0.6% in December, driven by gains in petroleum, coal products, and food subsectors. Immediate resistance can be seen at 1.4417 (Jan 23rd high), an upside break can trigger rise towards 1.4499(23.6%fib).On the downside, immediate support is seen at 1.4326(38.2%fib), a break below could take the pair towards 1.4285(Lower BB).
USD/JPY: The U.S. dollar edged lower in choppy trading as market digested Bank of Japan rate decision. The Bank of Japan raised interest rates on Friday to their highest level since the 2008 global financial crisis and revised up its inflation forecasts, signaling confidence that rising wages will help maintain inflation around its 2% target. This marks the BOJ's first rate hike since July of last year, following the inauguration of U.S. President Donald Trump, who may keep global policymakers on alert due to potential impacts from higher tariffs. BOJ Governor Kazuo Ueda stated that the central bank will continue raising rates as wage and price increases spread, with room to raise borrowing costs further before reaching levels considered neutral for the economy. However, he provided few details on the timing or pace of future hikes. Immediate resistance can be seen at 156.53 (38.2%fib) an upside break can trigger rise towards 157.00(Psychological level). On the downside, immediate support is seen at 154.92(50%fib) a break below could take the pair towards 153.27 (61.8%fib).
Equities Recap
European markets finished flat on Friday, taking a pause from recent robust gains on optimism about future monetary easing by global central banks.
.UK's benchmark FTSE 100 closed flat by 0.00 percent, Germany's Dax ended up by 0.04 percent, France’s CAC finished the day up by 0.44 percent.
Wall Street's main indexes closed lower on Friday as investors paused to digest mixed economic data and earnings reports, while preparing for a busy week of economic releases and a Federal Reserve meeting.
Dow Jones closed down by 0.32 percent, S&P 500 closed down by 0.29 percent, Nasdaq settled down by 0.50 percent.
Commodities Recap
Gold prices rose more than 1% on Friday, nearing its all-time high from October, as a weakening dollar due to U.S. President Trump's push for lower rates and tariff uncertainty propelled the metal towards its fourth consecutive weekly gain.
Spot gold was up 0.7% at $2,772.79 per ounce by 01:42 p.m. ET (1842 GMT). The prices, which have added 2.7% so far this week, are a mere $17.3 away from the record high of $2,790.15 hit on Oct. 31.U.S. gold futures settled 0.5% up at $2,778.90 per ounce.
Oil prices settled slightly higher on Friday but recorded a weekly decline, ending four consecutive weeks of gains, after U.S. President Donald Trump unveiled plans to boost domestic production and urged OPEC to lower crude prices.
Brent crude futures settled up 21 cents, or 0.27%, to $78.50 a barrel. U.S. West Texas Intermediate crude (WTI) settled up 4 cents, or 0.05%, to $74.66.