ACTIVE WEEK KEEPS ON GIVING WITH EUROZONE, NORTH AMERICAN DATA
A deluge of economic data will make its way through the financial markets on Friday, capping off a highly active week in the markets. The final session of the week will deliver reports from the Eurozone, United Kingdom, Canada and the United States.
Action begins at 07:00 GMT with reports on German import prices and retail sales. On the sales side, retail receipts are forecast to climb 0.9% in January following a 1.9% decline in December. Based on estimates, this should translate into year-over-year growth of 3.5%.
Italian GDP will be delivered at 09:00 GMT, followed by a report on Eurozone producer prices one hour later. Eurozone PPI is forecast to grow 0.4% in January and 1.6% annually.
In between those releases, the Chartered Institute of Purchasing and Supply will release the United Kingdom’s construction PMI for February.
Shifting gears to North America, the Canadian government will issue its quarterly report on GDP at 13:30 GMT. The Canadian economy is forecast to grow 2% between October and December, up from the 1.7% advance during the previous quarter.
In the United States, the University of Michigan will deliver its February consumer sentiment index at 15:00 GMT.
Energy traders will also be keeping a close eye on the weekly rig count report courtesy of Baker Hughes. The oilfield services provider reports on active US oil rigs on a weekly basis. Another week of gains will likely fuel concerns that shale producers are flooding the market, which could put a stop to the months long advance in oil prices.
In terms of monetary policy, European Central Bank (ECB) executive Yves Mersch will deliver a speech in the morning. UK Prime Minister Theresa May is also scheduled to deliver a speech on Friday.
Europe’s common currency staged a recovery on Thursday but remains well off multi-year peaks from last month. The EUR/USD exchange rate was last seen trading at 1.2271, where it was little changed. With the recent advance, the pair is eyeing the 1.2330 resistance. A clean break above this level is expected to bring the bulls back to market.
Cable staged a modest recovery attempt on Thursday, as Brexit fears continued to weigh. GBP/USD was last seen trading at 1.3781, unchanged from the previous close. Immediate support is located at 1.3720, followed by 1.3685. On the flipside, resistance is located at 1.3765.
The USD/CAD has peeled back from recent highs but continues to trade well above 1.2800. The pair held on to the 1.2832 level in early Asian trading, with the bulls eyeing 1.2900. To get there, it needs to get over the mid-1.2800 region. On the opposite side of the ledger, immediate support is seen at 1.2845.