Equities calm so far on Friday, virus resurgence eyed

Equity markets were flat during the London session on Friday as volatility decreased after Thursday’s decline. 

Yesterday’s US housing and employment data pointed to a slowdown in the economy, as economists largely predicted. Moreover, today’s UK retail sales rose by 0.8% in August, slightly better than the 0.7% predicted, but still a sharp slowdown from the 3.7% growth seen in July.

As the summer is about to end and autumn and winter are coming, more countries will likely impose additional lockdowns as COVID cases continue to accelerate across the EU. That will hinder economic growth yet again. 

The Fed nor the ECB seemed ready to introduce more stimulus, which might halt the impressive bull market in the US equities. 

Later in the day, Canadian retail sales are due. We will take a look at the USDCAD pair post the data in our afternoon technical analysis.

From other FX news, everything was flat and unchanged during the London session. The EURUSD pair was seen near 1.1840, and the Cable was some 30 pips below the important 1.30 level.

Source: https://www.axiory.com/market-news/equities-calm-so-far-on-friday-virus-resurgence-eyed