NORTH AMERICAN DATA HEADLINES FRIDAY SESSION
The global financial markets will shift their attention to North America on Friday, with reports from Canada and the United States set to make headlines. Europe will also see a fairly active session with a slew of PMI reports scheduled for release.
European action begins at 0:84 GMT with Italy’s manufacturing PMI for November. Over the next 15 minutes, IHS Markit will release the manufacturing gauges for France, Germany and the broader Eurozone. The euro area manufacturing PMI is forecast to come in at a highly robust 60.
Markit will also release the United Kingdom’s latest PMI report at 09:30 GMT.
Shifting gears to North America, the Canadian government will unveil its third quarter GDP figures at 13:30 GMT. The Canadian economy is forecast to expand 1.6% in the third quarter after surging 4.5% in Q2 to become the fastest-growing nation in the Group of 7.
The Canadian government will also report on employment. A net gain of 10,000 workers is expected for November.
In the United States, Markit will release the latest US manufacturing gauge. Meanwhile, the Department of Commerce will issue a monthly report on construction spending.
In policy news, Federal Open Market Committee (FOMC) members Richard Kaplan and Patrick Harker are scheduled to deliver speeches. Fed governor James Bullard will also deliver public remarks.
Earlier in the day, the Caixin China manufacturing index came in slightly weaker than expected at 50.8 on a scale where 50 separates expansion from contraction.
Dr. Zhengsheng Zong, director of macroeconomic analysis at CEBM Group, issued the following statement:
“For the most part, the manufacturing sector remained stable in November, although some signs of weakness emerged. In the fourth quarter, the economy is likely to maintain the stability observed since the start of the second half of the year. Economic growth in 2017 is expected to be higher than last year, but it may come under downward pressure in 2018.”
The Canadian dollar has been in steady decline over the past few days, with the USD/CAD reaching the highest level in a month. The pair could be highly volatile around the major market moving data releases Friday morning.
The euro bounced back on Thursday and is currently trading just north of the 1.19 US handle. The EUR/USD exchange rate continues to face resistance near 1.20. However, the long-term outlook remains favourable, with Danske Bank forecasting a return to 1.30.
Cable’s steady advance continued on Thursday, as prices extended gains north of 1.35. The GBP/USD exchange rate was last seen trading at 1.3530. The pair faces immediate support at 1.3410 and 1.3380. On the opposite side of the ledger, resistance is likely to come at 1.3450 and 1.3490.