US Data on Watch
The US dollar is ending the week on a firm footing with the USD index rallying again over the European morning on Friday, trading 98.86 last.
Despite US Q2 GDP yesterday confirming a lower level of growth from Q1, USD remains well bid. Looking ahead today, the final US data prints of the week will be durable goods and PCE, both for August.
EUR Testing Support
EURUSD has posted a minor recovery over early trading on Friday, though ends the week firmly lower with price having tested below the 1.0914 level twice this week.
Data weakness in the eurozone has weighed heavily on sentiment across the week with a range of survey sets released this morning also undershooting expectations.
GBP Going Down
GBPUSD has ended the week on a negative note. Despite Johnson losing his Supreme Court case and parliament returning, uncertainty around Brexit is keeping GBP pressured.
Johnson has threatened to prorogue parliament once again, exacerbating fears. Meanwhile, reports today highlight BOE’s Saunders saying that ongoing Brexit uncertainty might require a rate cut to support the economy. GBPUSD trades 1.2286 last.
Risk Markest Rally on Friday
Risk assets have ended the week on a better note though many indexes are ending the week in the red. News of impeachment proceedings being launched against Trump knocked risk appetite earlier in the week.
However, optimism around the next round of US-China trade talks helped sentiment recover into the back of the week. SPX500 trades 2986 last, ending the week just below the open as of writing.
JPY & Gold Down
Safe havens have both been lower over the week under the pressure of a resurgent US dollar and better risk appetite into the end of the week. JPY and gold have both weakened against the USD.
XAUUSD trades 1492.41 last with the rejection from 1522.75 gathering pace now. USDJPY trades 108.45 last with price making ist way back towards last week’s highs.
Oil prices have ended the week lower though downside momentum has stalled over the second half of the week. The EIA reported a further build in US crude stores last week which weighed heavily on oil.
News of a further rise in US crude production added weight to the sell-off. However, optimism around the next round of US-China trade talks due on October 10th has stemmed the declines. Crude trades 56.46 last.
CAD Fights Back
USDCAD has been under pressure again today, despite weaker oil prices and a stronger USD. CAD seems to be deriving some support for trade deal optimism which improves the outlook for commodities. USDCAD trades 1.3253 last, sitting right in the middle of the 1.3207 – 1.33 range.
Aussie Ends Week Lower
AUDUSD has managed to stay in the green today (only just) though ends the week lower. Comments from RBA Governor Lowe over the week have increased expectations for a further RBA rate cut next week. The slide in gold prices this week has also hit the Aussie. AUDUSD trades .6749 last.