- United Kingdom Dec goods trade balance GBP decrease to -13.58 bln gb (forecast -11.6 bln gb) vs previous -12.456 bln gb (revised from -12.23 bln gb)
- United Kingdom Dec manufacturing output yy decrease to 1.4 % (forecast 1.2 %) vs previous 3.8 % (revised from 3.5 %)
- United Kingdom Dec goods trade balance Non-EU decrease to -5.18 bln gb (forecast -4.1 bln gb) vs previous -4.507 bln gb (revised from -4.68 bln gb)
- United Kingdom Dec manufacturing output mm increase to 0.3 % (forecast 0.3 %) vs previous 0.2 % (revised from 0.4 %)
- United Kingdom Dec construction o/p vol yy decrease to -0.2 % (forecast -1.4 %) vs previous 0.8 % (revised from 0.4 %)
- United Kingdom Dec construction o/p vol mm increase to 1.6 % vs previous 0.1 % (revised from 0.4 %)
- United Kingdom Dec industrial output mm decrease to -1.3 % (forecast -0.9 %) vs previous 0.3 % (revised from 0.4 %)
- Italy Dec industrial output yy wda increase to 4.9 % (forecast 1.9 %) vs previous 2.3 % (revised from 2.2 %)
- Italy Dec industrial output mm sa increase to 1.6 % (forecast 0.8 %) vs previous 0.2 % (revised from %)
- France Dec industrial output mm increase to 0.5 % (forecast 0.1 %) vs previous -0.3 % (revised from -0.5 %)
- U.S. House approves bill to fund gov't and raise spending limits over 2 years, sending measure to trump
- Enough senators vote to pass two-year U.S. Budget deal and keep government operating
- U.S. Senate moves to key procedural vote on legislation to end government shutdown as time expires on Republican senator Paul's objection
Economic Data Ahead
- (0800 ET/1300 GMT) The National Institute of Economic and Social Research (NIESR) will report Britain's GDP estimate in the three months through January. The indicator rose 0.6 percent in the previous month.
- (0830 ET/1330 GMT) The Statistics Canada releases employment report for December. The economy is likely to have added 10,000 jobs, compared to a rise of 78,600 jobs in November, while the participation rate stood at 65.8 percent in the same month.
- (0830 ET/1330 GMT) Canada's unemployment rate is expected to edge up 5.8 percent in December from 5.7 percent in the previous month.
- (1000 ET/1500 GMT) The U.S. Census Bureau is likely to report that wholesale inventories rose 0.6 percent in December after posting a gain of 0.2 percent in the prior month.
- (1300 ET/1800 GMT) Baker Hughes reports U.S. Oil Rig Count.
Key Events Ahead
- (1145 ET/1645 ET GMT) Bank of England Deputy Governor for Financial Stability Sir Jon Cunliffe's speech
DXY: The dollar index held firm near 2-week peak after the U.S. Senate approved a budget deal including stopgap government funding bill. The greenback against a basket of currencies traded 0.1 percent up at 90.35, having touched a high of 90.57 on Thursday, its highest since Jan. 23. FxWirePro's Hourly Dollar Strength Index stood at 66.41 (Bullish) by 1000 GMT.
EUR/USD: The euro rebounded after falling to a 3-week low in the previous session, as a resurgent European economy fueled expectations the European Central Bank will shrink its balance sheet sooner than expected. The European currency traded 0.1 percent up at 1.2262, having touched a low of 1.2212 the day before, its lowest since Jan. 19. FxWirePro's Hourly Euro Strength Index stood at -102.14 (Highly Bearish) by 1000 GMT. Immediate resistance is located at 1.2330 (61.8% retracement of 1.2523 and 1.2212), a break above targets 1.2384 (10-DMA). On the downside, support is seen at 1.2212 (Previous Session Low), a break below could drag it lower 1.2200.
USD/JPY: The dollar rose above the 109.00 handle on news that U.S. House approved a bill to fund the government and raise spending limits over 2 years. The major was trading 0.4 percent up at 109.11, having hit a high of 110.48 last week, its highest since Jan. 23. FxWirePro's Hourly Yen Strength Index stood at 169.73 (Highly Bullish) by 1000 GMT. Investors’ will continue to track broad-based market sentiment, ahead of the U.S. wholesale inventories for further momentum. Immediate resistance is located at 109.36 (5-DMA), a break above targets 109.90 (21-DMA). On the downside, support is seen at 108.45, a break below could take it lower 108.00.
GBP/USD: Sterling edged down after data showed British industrial output sank by more than expected in December. However, the downside was limited as the Bank of England on Thursday stated that interest rates would probably need to rise sooner and by more than it had previously thought. The major traded 0.1 percent down at 1.3894, having hit a low of 1.3836 on Tuesday, it’s lowest since Jan 18. FxWirePro's Hourly Sterling Strength Index stood at -48.75 (Neutral) by 1000 GMT. Immediate resistance is located at 1.4064 (10-DMA), a break above could take it near 1.4150. On the downside, support is seen at 1.3848, a break below targets 1.3900. Against the euro, the pound was trading 0.2 percent down at 88.23 pence, having hit a low of 89.10 pence on Tuesday, it’s lowest since Jan. 17.
USD/CHF: The Swiss franc declined after rebounding from a 2-week low hit in the previous session, as the greenback rose on speculation that the Federal Reserve may raise rates more often than previously expected. The major trades 0.2 percent up at 0.9375, having touched a high of 0.9469 the day before, it’s highest since Jan. 24. FxWirePro's Hourly Swiss Franc Strength Index stood at -86.75 (Slightly Bearish) by 1000 GMT. On the higher side, near-term resistance is around 0.9476 (21-DMA) and any break above will take the pair to next level till 0.9500. The near-term support is around 0.9341 (10-DMA) and any close below that level will drag it till 0.9306.
European shares slumped following a fresh sell-off on Wall Street, while the greenback rose against a basket of currencies after U.S. House approved a bill to fund the government.
The pan-European STOXX 600 index slumped 0.6 percent to 371.81 points, while the FTSEurofirst 300 index lost 0.5 percent to 1,458.63 points.
Britain's FTSE 100 trades 0.3 percent lower at 7,152.62 points, while mid-cap FTSE 250 eased 0.2 percent to 19,295.38 points.
Germany's DAX declined 0.5 percent at 12,201.77 points; France's CAC 40 trades 0.6 percent down at 5,123.34 points.
Crude oil prices steadied after falling to multi-week lows in the previous session as record-high U.S. crude output added to concerns about a sharp rise in global supplies. International benchmark Brent crude was trading 0.3 percent up at $64.44 per barrel by 1022 GMT, having hit a low of $64.08 the day before, its lowest since Dec. 21. U.S. West Texas Intermediate was trading 0.3 percent up at $60.59 a barrel, after falling as low as $60.26 on Thursday, its weakest since Jan. 5.
Gold prices declined as the greenback held firm near 2-week peak on expectations for three Fed interest rate hikes this year. Spot gold trading 0.3 percent down at $1,315.15 an ounce by 1014 GMT, having hit a low of 1,306.96 on Thursday, lowest since Jan 14. U.S. gold futures were up 0.1 percent at $1,320.50 per ounce.
The U.S. Treasuries remained flat in a muted session as all eyes should be on this morning’s vote in the House. The yield on the benchmark 10-year Treasuries slipped nearly 1 basis point to 2.84 percent, the super-long 30-year bond yields hovered around 3.14 percent and the yield on the short-term 2-year traded 1-1/2 basis points lower at 2.11 percent.
The German bunds remained tad lower during European session amid a muted day that witnessed no data of any economic significance. The German 10-year bond yields, which move inversely to its price, rose 1 basis point to 0.77 percent, the yield on 30-year note surged nearly 2 basis points to 1.409 percent and the yield on short-term 3-year traded tad higher at -0.35 percent.
The New Zealand government bonds ended Friday’s session on a higher note as investors flocked into safe-haven instruments in a mild trading session that witnessed data of least economic significance. At the time of closing, the yield on the benchmark 10-year Treasury note, which moves inversely to its price, slipped 1 basis point to 2.97 percent, the yield on 20-year also fell 1 basis point to 3.48 percent and the yield on short-term 2-year slumped 2 basis points to 1.86 percent.
The Japanese government bonds remained slightly on the upside in a muted trading session that witnessed little data of major economic significance. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, slipped 1/2 basis point to 0.07 percent, the yield on the long-term 30-year note fell 1 basis point to 0.81 percent and the yield on short-term 2-year too remained tad lower at -0.14 percent.
The Australian bonds jumped on the last trading day of the week Friday as investors covered in short positions after the Reserve Bank of Australia’s (RBA) monetary policy statement cited inflation concerns. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, fell 2 basis points to 2.84 percent, the yield on the long-term 30-year note dipped 2-1/2 basis points to 3.47 percent and the yield on short-term 2-year slid 4 1 basis points to 1.97 percent.