Friday Focus: Markets Eye Canadian Retail Sales and U.S. Durable Goods

Hello Traders, welcome to Friday morning as we wrap up a busy week. Yesterday brought significant movement, primarily due to the release of PMIs across major economies. European PMIs delivered a mixed bag: while French numbers came in below expectations, German and broader Eurozone data surprised to the upside. This gave the euro a lift, especially with Germany’s data showing unexpected resilience. The British PMIs, however, disappointed, yet the pound held its ground for a time after the data, showcasing some mid-week strength. In the U.S., PMIs met expectations, so there was little surprise from American data on Thursday.

Today, we started the Asian session with Tokyo’s core CPI, which showed a slight decline but still landed above expectations at 1.8%, hinting at persistent inflation pressures. Looking ahead, all eyes are on Canada’s upcoming retail sales report, with the market anticipating a slowdown. In the U.S., we’re expecting durable goods orders, which are also forecasted to show a decline from the previous month. These figures could be key drivers as we close out the week, particularly for the U.S. dollar and Canadian dollar.

Across the markets, Thursday’s PMI boost helped stabilize indices slightly, yet most major indices are on track to end the week in the red. Commodities have seen a mixed performance: oil initially showed strength earlier in the week but has lost steam, with a bearish reversal yesterday setting a cautious tone for the day ahead. Metals, especially gold and silver, have held their ground after recent highs, though the momentum has softened, leaving a bearish undercurrent as we head into the weekend. With earnings season now winding down, all focus remains on today’s final economic releases, which could influence sentiment going into next week.

Source: https://www.axiory.com/analytics/market-news/friday-focus-markets-eye-canadian-retail-sales-and