Americas Roundup: Dollar index dips lower after U.S. economic data, Loonie on track for 1.7 percent gain this week, Oil prices edge up; still near 2017 lows on stubborn glut-June 17th,2017

Market Roundup

• US Housing starts number MM 1.092 mln v 1.215 mln forecast, 1.156 mln –previous.

• US Building Permits: Number 1.168 mln v 1.250 mln forecast, 1.228 mln – previous.

• US U Mich sentiment prelim 94.5 v 97.1 forecast, 97.1 – previous.

• US ECRI weekly annualized 3.7%, 4.1% – previous.

• US economy seen growing 1.54% in Q3 vs 1.80% estimate June 9 – N.Y. Fed's Nowcast model.

• Fed's Kashkari: Fed should have waited to raise rates until inflation strengthened.

• Kashkari: Fed may be erroneously forecasting increase in inflation.

• Kashkari: Would have liked for Fed to announce a start date for trimming balance sheet.

• Fed's Kaplan: Sees rebound in economic growth for rest of year.

• Kaplan: He will be very patient about making another rate hike.

• Kaplan: Pretty darn close to full employment.

• Yellen says Fed to give banks more info on stress tests –letter.

• Trump says 'canceling' Obama Cuba policy, restricts travel and trade.

• US Deputy Attorney General Rosenstein may need to recuse himself from Russia probe –ABC.

Looking Ahead – Economic Data (GMT)

• 23:50 Japan Trade Balance total yen 76.0 bln forecast, 481.7 bln – previous

• 01:30 China House prices YY* 10.7% – previous

Looking Ahead – Events, Other Releases (GMT)

• No significant events

Currency Summaries

EUR/USD is likely to find support at 1.0487 levels and currently trading at 1.0564 levels. The pair has made session high at 1.0574 and hit lows at 1.0496 levels. The dollar dipped against euro on Friday as greenback which was boosted by rate hike in the previous two sessions, turned lower after disappointing economic data. Greenback has hovered near its lowest since November as a batch of disappointing economic readings, together with the lack of progress on fiscal stimulus from Washington, have overshadowed the outlook on more rate hikes from the Federal Reserve. Earlier Friday, the government said U.S. home construction fell for a third consecutive month in May to its lowest in eight months, while the University of Michigan said its gauge on consumer sentiment deteriorated in early June. U.S. housing starts dropped 5.5 percent to a seasonally adjusted annual rate of 1.09 million units in May, the Commerce Department said on Friday. That was the lowest since September 2016. Economists polled had forecast groundbreaking activity rising to a rate of 1.22 million units. The euro was up 0.4 percent at $1.1191, but about a cent below a seven-month peak of $1.1296 hit before the Fed's widely expected rate hike on Wednesday. The dollar index was down 0.3 percent at 97.126, putting it on track for a 0.15 percent decline on the week.

GBP/USD is supported in the range of 1.2682 levels and currently trading at 1.2775 levels. It reached session high at 1.2802 and dropped to session low at 1.2758 levels. Sterling inched higher against the U.S. dollar on Friday as political and economic worries counterbalanced the surprise of three Bank of England policymakers voting in The Australian of a rate hike. Sterling strengthened against the dollar on Thursday after it emerged that the central bank's monetary policy committee had seen a 5-3 split on whether to raise interest rates immediately, amid rapidly increasing domestic consumer prices. At a time when the BoE has blamed the rise in inflation past its 2 percent target mainly on a weak pound, traders read the split vote as a warning that officials could seek to defend the currency with rhetoric or action, even as the economy overall slows. The pound has fallen over 15 percent since last June's vote for Brexit, although it has recovered some ground since the 31-year lows hit in October and even popped above $1.30 last month on bets that the Conservative party would increase its parliamentary majority in elections held last week. The pound edged up 0.2 percent to $1.2774, though it slipped 0.2 percent from its perch against the euro, to 87.60 pence.

USD/CAD is supported at 1.3124 levels and is trading at 1.3211 levels. It has made session high at 1.3262 and lows at 1.3208 levels. The Canadian dollar strengthened against the greenback on Friday as Canadian dollar was boosted after oil prices recovered and the greenback lost ground against a basket of major currencies after weaker-than-expected U.S. housing data raised doubts that the Federal Reserve will be able to raise interest rates again this year. Prices of oil, one of Canada's major exports, edged up from 2017 lows but remained on track for a fourth consecutive week of losses because of excess supplies. On the data front, Foreign investment in Canadian securities slowed in April as investors scooped up bonds but sold their equities holdings, data from Statistics Canada showed. International investors bought C$10.60 billion in Canadian securities in the month, while Canadians reduced their holdings in foreign securities by C$9.87 billion after four consecutive months of acquisitions. In other domestic data, lending to small Canadian businesses picked up in April, suggesting growth in the broader economy was gaining momentum. The PayNet Small Business Lending index rose to 120.1 from 118.7 in March. The Canadian dollar was trading at C$1.3211 to the greenback, or 75.52 U.S. cents, up 0.2 percent. The currency traded in a range of C$1.3222 to C$1.3272.

AUD/USD is supported around 0.7564 levels and currently trading at 0.7618 levels. It hit session high at 0.7629 and made session lows at 0.7609 levels. The Australian dollar strengthened against US dollar on Friday in the wake of upbeat domestic jobs data and recovery in oil prices. The Aussie was 0.2 percent firmer at $0.7594. That put it up 0.8 percent for the week which, if sustained, would be the highest close in almost three months. Stiff resistance, however, was expected around Wednesday's peak of $0.7636, with support coming in at $0.7569.Oil prices staged a modest rebound as some producers reduced exports and U.S. rig additions slowed. The Aussie had fared better as domestic data showed a sharp 42,000 jump in employment in May and a drop in the jobless rate to a four-year low of 5.5 percent. The U.S. dollar fell against a basket of key currencies after weaker-than-expected U.S. housing data, which raised concerns about spending. It was last down 0.3 percent after the day's data. The weaker-than-expected U.S. data also weighed on U.S. Treasury yields as it fueled uncertainty about the U.S. rate outlook.

Equities Recap

European shares bounced back from two days of losses on Friday, as financial stocks were helped by a Greek debt deal that further eased political uncertainty in the euro zone, but competition worries hit Europe's retailers.

UK's benchmark FTSE 100 closed up by 0.5 percent, FTSEurofirst 300 ended the day up by 0.53 percent, Germany's Dax ended up by 0.4 percent, France’s CAC finished the day up by 0.7 percent.

Major U.S. stock indexes ended little changed on Friday even as's $13.7 billion deal to buy upscale grocer Whole Foods roiled the retail sector and rocked shares of an array of companies including Wal-Mart and Target.

Dow Jones closed up by 0.11 percent, S&P 500 ended up 0.47percent, Nasdaq finished the day down by 0.23 percent.

Treasuries Recap 

U.S. Treasury yields edged lower on Friday, with all maturities posting weekly declines, after weaker-than-expected U.S. housing data fueled doubts that the Federal Reserve will be able to raise interest rates again this year.

Benchmark 10-year Treasuries were last up 2/32 in price to yield 2.155 percent, compared with 2.162 percent late Thursday. Two-year Treasuries were last up 2/32 in price to yield 1.319 percent, compared with 1.355 percent late Thursday.

Commodities Recap

Oil prices on Friday bounced up off the year's lows as some producers reduced exports and U.S. rig additions slowed, but the rebound was modest and crude posted its fourth weekly decline on persistent concerns about global oversupply.

Brent crude futures rose 45 cents to settle at $47.37 per barrel and U.S. West Texas Intermediate (WTI) crude settled at $44.74 per barrel, up 28 cents. Both benchmarks notched a weekly loss exceeding 1.6 percent.

Gold was little changed on Friday as investors judged that a sell-off sparked by a rise in U.S. interest rates this week had run its course and the dollar weakened, making bullion cheaper for holders of other currencies.

Spot gold was up 0.1 percent at $1,254.24 an ounce by 2:19 p.m. EDT (1819 GMT), having earlier hit $1,251.05, its lowest since May 24.U.S. gold futures settled up 0.2 percent at $1,256.50.

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