• US Wall Street falls as bill on Hong Kong revives trade worries
• Traders nervous about China’s response to U.S. HK law
• Next week's jobs report next major economic focus
• Brazil Oct Debt-to-GDP ratio 55.9%, 55.0% forecast, 55.3% previous
• Brazil Oct Budget Balance -10.900B, -48.700B forecast, -45.920B previous
• Brazil Oct Budget Surplus 9.400B, 8.000B forecast, -20.541B previous
• Canada GDP Implicit Price (QoQ) (Q3) 0.10%,0.70% forecast, 1.10% previous
• Canada GDP (YoY) (Q3) 1.65%,1.93% previous
• Canada Sep GDP (MoM) 0.1%,0.1% forecast, 0.1% previous
• Canada GDP (QoQ) (Q3) 0.3%,0.9% previous
• Canada GDP Annualized (QoQ) (Q3) 1.3%,1.2% forecast, 3.5% previous
• Canada Sep Budget Balance -0.58B, -3.67B previous
• Canada Sep Budget Balance (YoY) -5.80B, -5.22B previous
Looking Ahead – Economic Data (GMT)
• 01:00 China Nov Manufacturing PMI 49.5 forecast, 49.3 previous
• 01:00 China Nov Non-Manufacturing PMI 52.8 previous
Looking Ahead – Events, Other Releases (GMT)
• No significant events
EUR/USD: The euro held near two-week lows on Friday as a combination of record low currency market volatility and upbeat data boosted demand for the euro. Data showed eurozone inflation accelerated faster than expected in November on a rise in food and services prices. Annual inflation rates however remained far lower than European Central Bank expectations. The drop in currency market volatility has fuelled appetite for carry trades where investors borrow in currencies with low or negative interest rates and invest in relatively higher yielding ones. Immediate resistance can be seen at 1.1033 (9 DMA), an upside break can trigger rise towards 1.1073 (100 DMA).On the downside, immediate support is seen at 1.0976 (Higher BB), a break below could take the pair towards 1.0900 (Psychological level).
GBP/USD: The pound hovered around $1.29 on Friday, showing little reaction to headlines, with investors awaiting major political developments and the result of Britain’s Dec. 12 election. Pound held onto gains from when a major poll by YouGov released on Wednesday forecast that Prime Minister Boris Johnson’s Conservative Party would win the election with its biggest majority in parliament since 1987. The British currency was last trading at $1.2927, up 0.14 percent on the day. Immediate resistance can be seen at 1.2964 (Higher BB), an upside break can trigger rise towards 1.3000 (Psychological level).On the downside, immediate support is seen at 1.2831 (Nov 27th low), a break below could take the pair towards 1.2796 (Lower BB).
USD/CAD: The Canadian dollar was little changed against the greenback on Friday, posting a decline for the month as investors worried about U.S.-China tensions and data showed that Canada's economic growth slowed as expected in the third quarter. At (2031 GMT), the Canadian dollar was trading nearly unchanged at 1.3279 to the greenback. Oil slumped and Wall Street's major indexes fell as U.S.-China discord over Hong Kong fueled investor anxiety about trade talks. The currency traded in a range of 1.3272 to 1.3314.Immediate resistance can be seen at 1.3332 (Higher BB), an upside break can trigger rise towards 1.3348 (Oct 19th high).On the downside, immediate support is seen at 1.3270 (11 DMA), a break below could take the pair towards 1.3217 (50 DMA).
USD/JPY: The dollar declined against the Japanese yen on Friday, as unsigned partial U.S.-China trade deal increased demand for Japanese yen. China warned the United States on Thursday it would take “firm countermeasures” in response to U.S. law backing anti-government protesters in Hong Kong, and said attempts to interfere in the Chinese-ruled city were doomed to fail.U.S. President Donald Trump on Wednesday signed into law congressional legislation which supported the protesters, despite angry objections from Beijing, with which he is seeking a deal to end a damaging trade war.Strong resistance can be seen at 109.00 (Psychological level), an upside break can trigger rise towards 109.69 (100 DMA).On the downside, immediate support is seen at 109.30 (5 DMA), a break below could take the pair towards 108.67(11 DMA).
European shares fell for the second straight session on Friday as investors grew fearful that China’s retaliation to a U.S. law backing Hong Kong protesters could threaten to derail negotiations on a trade truce between the two countries.
UK's benchmark FTSE 100 closed down by 0.94 percent, Germany's Dax ended down by 0.07 percent, France’s CAC finished the day up by 0.13 percent.
U.S. stocks slipped on Friday in a post-holiday shortened session as a U.S.-China discord over Hong Kong reignited trade tensions and retail stocks dipped on signs of a tepid start to in-store Black Friday sales.
Dow Jones closed down by 0.40 percent, S&P 500 closed down by 0.40 percent, Nasdaq ended down by 0.46 percent.
U.S. Treasury yields were steady on Friday after China said it would retaliate after the United States passed legislation backing anti-government protesters in Hong Kong, potentially complicating the chance of a bilateral trade deal.
The benchmark 10-year note yielded 1.767%, little changed from late Wednesday.
Gold prices gained on Friday as markets awaited further developments on U.S.-China trade talks after Beijing said it would retaliate against Washington for passing a law in support of Hong Kong protesters.
Spot gold was up 0.4% at $1,463.59 an ounce as of 01:56 p.m. ET (1856 GMT). It has shed around 3.3% this month. U.S. gold futures settled 0.6% higher at $1,470.20 per ounce.
Oil prices fell on Friday, with U.S. crude dropping more than 4%, on fresh trade tensions and record high U.S. crude production, but they still ended the month higher as OPEC watchers expect an extension next week to a pact to throttle oil output beyond March.
Brent crude futures settled down $1.44 at $62.43 a barrel, and was down 1.5% on the week. Still, the contract posted its biggest monthly gain since April with a rise of about 6%.
West Texas Intermediate (WTI) futures settled down $2.94 at $55.17, falling of 4.1% on the week, after three consecutive increases.