*EU HICP ex Energy and Food (MoM) (Dec): 0.3% , 0.4% forecast, -0.4% previous
*13:30 Canada Foreign Securities Purchases (Nov): 14.50B forecast ,21.55B previous
*13:30 Canada Foreign Securities Purchases by Canadians (Nov): -2.650B previous
*14:00 Spanish Trade Balance (Nov): -3.93B previous
*14:15 US Capacity Utilization Rate (Dec): 77.0% forecast , 76.8% previous
*14:15 US Industrial Production (YoY) (Dec): -0.90% previous
*14:15 US Industrial Production (MoM) (Dec): 0.3% forecast , -0.1% previous
*14:15 US Manufacturing Production (MoM) (Dec): 0.2% forecast , 0.2% previous
EUR/USD: The euro strengthened against the dollar on Friday, euro was supported by positive economic data from China that boosted risk sentiment. China's economy grew by 5.4% year-on-year in Q4, surpassing analysts' expectations, according to official data. Retail sales in China also rose by 3.7% year-on-year in December, exceeding the 3.5% forecast and up from 3% in November. The optimism was tempered by focus shifting to U.S. President-elect Donald Trump's inauguration, with investors closely monitoring potential new policies, including the possibility of trade tariffs. Immediate resistance can be seen at 1.0327(50%fib), an upside break can trigger rise towards 1.0378(61.8%fib).On the downside, immediate support is seen at 1.0276(38.2%fib), a break below could take the pair towards 1.0213(23.6%fib).
GBP/USD: The pound fell against the dollar on Friday after unexpected data showed a decline in British retail sales in December, deepening the bleak economic outlook. Retail sales, adjusted for Black Friday sales, fell by 0.3% month-on-month in December, following a downwardly revised 0.1% growth in November, according to the Office for National Statistics. These figures add to a series of disappointing economic data since Chancellor Reeves announced Britain's largest tax hikes since 1993 in her October budget, raising expectations for a Bank of England interest rate cut next month. Immediate resistance can be seen at 1.2253(38.2%fib), an upside break can trigger rise towards 1.2356(50%fib).On the downside, immediate support is seen at 1.2134(23.6%fib), a break below could take the pair towards 1.2073(Lower BB)
AUD/USD: The Australian dollar weakened on Friday, pressured by a broadly stronger U.S. dollar, despite positive economic data from China. China's economy grew by 5.4% year-on-year in Q4, surpassing analysts' expectations. Retail sales in China rose 3.7% in December, exceeding the 3.5% forecast and up from 3% in November. However, China's unemployment rate increased to 5.1% in December, marking a three-month high, up from 5% in November.At GMT 12:40, The Australian dollar was last trading down 0.43% to $0.6185. Immediate resistance can be seen at 0.6230(38.2%fib), an upside break can trigger rise towards 0.6297 (50%fib).On the downside, immediate support is seen at 0.6179 (Jan 15th low), a break below could take the pair towards 0.6145 (23.6%fib).
USD/JPY: The U.S. dollar strengthened on Friday as investors turned their focus to Donald Trump's presidential inauguration and awaited the incoming administration's policies. Trump's inauguration on Jan. 20 as the 47th U.S. president will likely bring with it a Day One-barrage of executive orders on anything from taxes to tariffs, just as the fourth-quarter earnings season gets underway in earnest.U.S. markets are closed Monday for Martin Luther King Jr. day, so it may not be until Tuesday that investors can fully react.Any early moves on tariffs will be a particular focus, after the leaks, counterleaks and denials that have already riled currencies and shares in big global manufacturers. Immediate resistance can be seen at 156.43 (38.2%fib) an upside break can trigger rise towards 158.78(23.6%fib). On the downside, immediate support is seen at 155.54(50%fib) a break below could take the pair towards 154.22 (61.8%fib).
Equities Recap
European shares climbed on Friday, supported by broad-based gains as easing government bond yields and positive economic data from China improved market sentiment. The upbeat mood helped keep the STOXX 600 on track for its fourth consecutive weekly rise.
At (GMT 13:20 ),UK's benchmark FTSE 100 was last trading up at 1.38 percent, Germany's Dax was up by 1.10 percent, France's CAC finished was up by 1.05 percent.
Commodities Recap
Gold prices eased on Friday but remained on course for a third straight week of gains, as U.S. inflation data and dovish comments from a Federal Reserve official fueled hopes that the central bank could cut interest rates multiple times this year.
Spot gold fell 0.3% to $2,706.71 per ounce as of 0941 GMT. Bullion has gained about 0.6% so far this week.U.S. gold futures dropped 0.7% to $2,732.00.
Oil prices rose on Friday, heading for a fourth consecutive week of gains, as new U.S. sanctions on Russian energy trade raised expectations of oil supply disruptions.
Brent crude futures were trading up 36 cents or 0.4% higher at $81.65 per barrel by 1113 GMT, having gained 2.4% so far this week.
U.S. West Texas Intermediate crude futures were up 53 cents or 0.7% at $79.21 a barrel, having climbed 3.5% for the week.