The U.K.’s main equity rose Friday, pushing aside weakness across global markets and tensions surrounding the Italian budget, which weighed on continental stocks.
The Canadian dollar took a dive on Friday, flipping into negative territory versus its U.S. rival following economic data that missed consensus estimates. Consumer price inflation for September read 2.2% year-on-year, compared with the FactSet consensus of 2.7%. For the month, Canada actually recorded disinflation of 0.4%, versus 0.1% inflation expected. Retail sales for August also missed estimates, contracting 0.1% versus forecasts of 0.3% growth. The U.S.-Canadian dollar pair , which had spent the beginning of Friday's session in the red, turned positive following the data. One U.S. dollar last bought C$1.3103, its highest level in almost six weeks, according to FactSet. The Bank of Canada, which factors the above data points into its monetary policy decision making, is due for a policy update next week.
Major digital currency prices are trading at or near Thursday’s closing levels, continuing a trend that’s held most coins inside tight ranges over the last four sessions. Bitcoin, the world’s largest digital currency, was last changing hands at $6,632.87, down 0.2% since Thursday’s level at 5 p.m. Eastern Time on the Kraken exchange. After rising more than 10% earlier in the week, bitcoin (BTCUSD) has gone back and forth between $6,300 and $6,500 lacking any real direction.
Foreign exchange markets reflect an improvement to risk sentiment following China’s sluggish GDP release but words of support and encouragement from Chinese authorities on Friday. Elsewhere, Italy’s budget and Brexit remain major drivers as uncertainty seems here to stay.
Gold prices were flat on Friday as the U.S. dollar was volatile despite expectations of another interest rate increase this year and falling equities. Comex gold futures for December delivery inched down 0.07% to $1,229.30 a troy ounce as of 4:45 AM ET (8:45 GMT), not far from an earlier session high of $1,232.70. Rising interest rates are likely remain a concern for gold prices.
Investing.com - Gold prices gained on Friday as Asian stocks traded mostly lower after China reported disappointing third-quarter GDP data.
The euro fell towards a two-month low on Friday after the European Union criticised Italy's spending plans, raising fresh concern over conflict within the common currency zone. Political wrangling over the budget in heavily indebted Italy has seen the euro weaken over 1 percent versus the dollar this week. In the first step of a procedure that could end with Brussels rejecting the budget and fining Italy, the Commission sent Rome a letter on Thursday calling a draft budget an "unprecedented" breach of EU fiscal rules.
Investing.com - The yuan was little changed on Friday after official data showed China’s third quarter GDP growth slowed more than expected.
The direction of the NZD/USD the rest of the session on Friday is likely to be dictated by the direction of U.S. Treasury yields and U.S. equity prices. However, if U.S. stock markets recover from Thursday’s losses then look for the short-covering rally to continue. Another spike higher in U.S. Treasury yields and further weakness in the stock market will likely drag the New Zealand Dollar lower.
Investing.com - Bitcoin and other major cryptocurrency prices fell on Friday as Elvira Nabiullina, the head of the Central Bank of the Russian Federation, said markets’ excitement toward virtual coins have begun to fade.
There’s not much to look at from the data front. Traders will mostly be focused on risk sentiment. If risk is on, the AUD/USD could catch a bid. If risk is off and stocks fall and the dollar rises then look for pressure.
Investing.com - Asian stocks fell in morning trade on Friday after official data showed China’s economy slowed more than expected in the third quarter of 2018.
Gold markets broke out to the upside recently, and over the last couple of days we have simply grounds sideways overall and at this point I think what we are trying to do is reach the $1250 level above. That is massive resistance due to technical and psychological importance though.
The US dollar has gone back and forth against the Japanese yen over the last several for our candles, as we consolidate the gains that we had recently enjoyed. It looks as if the market is ready to look for a reason to go higher though.
The British pound continues to hover around the 1.31 handle against the US dollar, as we are simply sitting around in general. The market hasn’t shown much proclivity in taking off so far during the day, and I think we are simply it a bit of a holding pattern.
The British pound continues the chop around overall against the Japanese yen during the day on Thursday, as there are a lot of moving headlines that can influence this market rather quickly.
The Euro fell below the 1.15 level during the session on Thursday, as we continue to test this general area of the chart, as there seems to be a lot of support extending down to the 1.1450 level. It is because of this that it looks like we are trying to build up the confidence to finally go higher.
The Australian dollar initially took off on Thursday, reaching the top of the recent consolidation area, but then turned right back around the show signs of weakness as the Americans stepped on board. It looks as if we are simply going to continue to consolidate in the short term.
China sees its slowest growth since 2009 to rile the markets in the wake of a Thursday sell-off that came off the back of positive stats out of the U.S.
Investing.com - The dollar rose against its rivals Thursday as a slew of positive U.S. economic data reaffirmed investor expectations that the Federal Reserve will continue with its glacial pace of rate hikes, despite criticism from President Donald Trump.
Investing.com - Gold prices rose on Thursday as bullish investors took the Federal Reserve's latest hawkish talk in stride and targeted the $1,250 level in a bid to recapture ground lost earlier in the year.
Bitcoin prices traded marginally lower Thursday, continuing what’s been a subdued few sessions for the world’s largest digital currency. “It’s only a matter of time now,” said Mati Greenspan, senior market analyst at eToro, speaking about a potential breakout for bitcoin. Transactions per second is a barometer for the scalability of blockchain technology, which has been a roadblock to adoption of the distributed-ledger technology.
Investing.com - The U.S. dollar was higher on Thursday as bond yields rose and minutes from the Federal Reserve’s September meeting supported a rate increase in December.The U.S. dollar index, which tracks the greenback against a basket of other currencies, rose 0.13% to 95.47 as of 10:57 AM ET (14:57 GMT).Treasury yields were higher on Thursday, with the United States 10-Year note near a one-week high of 3.211% and the 2-year note at a 10-year high. ...
The U.K.’s main equity index on Thursday trades slightly higher, benefiting partly from lackluster trade in the British pound.