US CONSUMER SENTIMENT, OIL RIG COUNT IN FOCUS ON FRIDAY
US economic data and central bank speakers headline a relatively calm Friday session for the global financial markets. Currency and commodity traders can therefore expect some movement in the market before the weekend arrives.
Action begins in Europe at 06:00 GMT with a report on German wholesale prices. The wholesale price index is expected to register 0.4% growth for the month of June. The indicator jumped 0.8% the month before.
The French government will report on second-quarter nonfarm payrolls. The pace of job creation was 0.2% in the first quarter.
At 07:00 GMT, the Spanish government will release a pair of inflation indicators for the month of June. The consumer price index (CPI) is projected to rise 0.2% month-on-month following a gain of 0.9% the month before. The harmonised index of consumer prices (HICP) likely registered a gain of 0.3% month-on-month, translating into an annualized rate of 2.3%.
Switzerland is also scheduled to report on factory-gate prices at 07:15 GMT. Producer and import prices are projected to rise 0.2% for June and 3.2% annually.
Shifting gears to North America, the US Department of Labor will release the import price index and export price index for the month of June. Import prices are forecast to rise 0.1% compared with May. Export prices, meanwhile, likely rose 0.2%.
The University of Michigan’s consumer sentiment index will headline the economic calendar at 14:00 GMT. The preliminary July reading is forecast to hold steady at 98.2, unchanged compared with June.
Oilfield service provider Baker Hughes Inc. will report on the weekly US rig count at 17:00 GMT. The headline indicator is used to gauge the domestic shale industry.
Also on Friday, the Federal Reserve will release its latest Monetary Policy Report, which is submitted to Congress. Shortly thereafter, Federal Open Market Committee (FOMC) member Raphael Bostic will deliver a speech.
Europe’s common currency faced headwinds on Thursday, as an intraday rally attempt was capped below 1.1700. EUR/USD now trades in the 1.1660 range. Immediate support is located at 1.1650, followed by 1.1625. Immediate resistance is located at 1.1690.
Cable extended its downward path on Thursday, as Brexit chaos continued to rattle sterling’s remaining bulls. GBP/USD has since broken back below 1.3200, with investors eyeing the former breakout point of 1.3155 as the next support level. On the flipside, the 4 June high of 1.3250 offers immediate resistance.
The dollar bulls have sent the USD/JPY sharply higher in recent weeks, with USD/JPY breaking out of a prolonged trading range. The pair, currently trading around 112.70, is now eyeing the November 2017 high of 114.73 as the next major hurdle.