America’s Roundup: Dollar set for weekly slide as US inflation cools ,Wall Street ends up, Gold steady, Oil jumps 4% after week-long selloff, but falls for a fourth week-November 18th,2023

Posted at 18 November 2023 / Categories Market Roundups

Market Roundup

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Looking Ahead Economic Data(GMT)

•No Data Ahead

Looking Ahead Events And Other Release(GMT)

• No Significant Events

Currency Summaries

EUR/USD: The euro steadied against dollar on Friday   after Eurostat data confirmed year-on-year inflation in the euro zone slowed sharply in October. Eurostat said consumer inflation in the 20 countries using the euro decelerated to 2.9% year-on-year in October from 4.3% in September after prices rose 0.1% month-on-month. Price rises in the services sectors, the biggest part of the euro zone economy, added 1.97 percentage points to the final year-on-year number and more expensive food, alcohol and tobacco added another 1.48 percentage points. The European Central Bank wants to keep inflation at 2.0% over the medium term and has raised interest rates to record highs to slow down price growth, at the same time slowing euro zone economic growth. The euro rose 0.52% to $1.0906 .Immediate resistance can be seen at 1.0912(Daily high), an upside break can trigger rise towards 1.0930( (23.6%fib).On the downside, immediate support is seen at 1.0843 (38.2%fib), a break below could take the pair towards 1.0827(5DMA).

GBP/USD: The pound initially dipped Friday but recovered ground after a slew of economic data spurred expectations among investors that interest rates have peaked. British retail sales volumes fell unexpectedly in October as stretched consumers stayed at home, official data showed on Friday in a new warning sign for the economy. The data painted a gloomy picture of UK consumers, but also meant that traders were pricing in the possibility of interest rate cuts.Futures markets show traders expect interest rates to fall by around 80 basis points by the end of 2024 from 5.25% currently, compared with a decline of just over 50 bps a week ago. Sterling was last up 0.32% on the day at $1.2462. Immediate resistance can be seen at 1.2462(23.6%fib), an upside break can trigger rise towards 1.2492 (Nov 15thth high).On the downside, immediate support is seen at 1.2407 (5DMA), a break below could take the pair towards 1.2378(38.2%fib).

 USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Friday, adding to its gains for the week, as oil prices rebounded and recent evidence that inflation is cooling weighed on the greenback. The price of oil, one of Canada's major exports, rallied as investors who had taken short positions took profits, prompting a rebound in prices that slumped to four-month lows during the previous session. U.S. sanctions on some Russian oil shippers also lent support. Domestic data showed that producer prices fell by 1.0% in October from September on lower prices for energy and petroleum products, as well as softwood lumber. The loonie   was trading 0.3% higher at 1.3715 to the greenback, or 72.91 U.S. cents, after moving in a range of 1.3709 to 1.3770.. Immediate resistance can be seen at 1.2141 (38.2%fib), an upside break can trigger rise towards 1.2229 (50%fib).On the downside, immediate support is seen at 1.2075 (21DMA), a break below could take the pair towards 1.2039 (23.6%fib).

USD/JPY: The dollar declined against the yen  to trade below 150 per dollar as market expectations that the Federal Reserve is done with its rate hiking cycle weighed on dollar. Cooler-than-expected U.S. inflation data on Tuesday and Wednesday hastened market expectations for how soon the Federal Reserve will cut rates. Such a move would weaken a major dollar support and could come as early as next year's first quarter. The yen - punished broadly this year by dollar strength - broke the 150 mark for the first time in nearly two weeks, gaining 0.69% to 149.68 to the dollar. The U.S. currency is down about 1.4% versus the Japanese currency since Monday .Strong resistance can be seen at 150.11(5DMA),an upside break can trigger rise towards 150.62(23.6%fib).On the downside, immediate support is seen 149.26 (38.2%fib)a break below could take the pair towards 148.12 (50%fib).

 Equities Recap

European shares rose on Friday, boosted by financials and healthcare, ending the week higher on growing optimism that central banks will aggressively cut interest rates next year.

UK's benchmark FTSE 100 closed up by 1.26 percent, Germany's Dax ended up  by 0.84 percent, France’s CAC finished the day up by 0.26 percent.

Wall Street's three major indexes edged up slightly on Friday as investors digested recent gains while remarks from Federal Reserve officials clouded the outlook about when the U.S. central bank might start cutting interest rates.

Dow Jones closed up by  0.01% percent, S&P 500 closed up by 0.13% percent, Nasdaq settled up by 0.08%  percent.

Treasuries Recap

The steep decline in U.S. Treasury yields since the start of November continued on Friday with those on the benchmark 10-year note briefly falling to the lowest level in two months before inching higher.

In mid-day U.S. trading, the 10-year yield   was up 1.4 basis points at 4.459%, while the yield on the 30-year Treasury bond  was down 0.8 basis points at 4.615%.

Commodities Recap

Gold prices held steady on Friday but headed for a weekly gain as the dollar and Treasury yields weakened amid increased expectations that the U.S. Federal Reserve is done with its monetary policy tightening.

Spot gold was steady at $1,980.10 per ounce    after rising to a two-week high earlier in the session. Prices were up about 2.3% so far this week. U.S. gold futures  fell 0.2% to $1,982.80.

Oil prices jumped more than 4% on Friday, rebounding from a four-month low hit in the previous session, as investors who had taken short positions took profits and while U.S. sanctions on some Russian oil shippers lent support.

Brent crude futures settled up $3.19, or about 4.1%, at $80.61 a barrel, while West Texas Intermediate crude (WTI) rose $2.99, or 4.1%, at $75.89.

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