MARKETS PREPARE FOR UK ECONOMIC FIGURES
On the economic calendar, only a few nations will make headlines on Friday, including the United Kingdom. Europe’s second-largest economy will release a deluge of government data at 09:30 GMT.
The Office for National Statistics will report on manufacturing production and industrial production early in the day. Manufacturing production is forecast to rise 0.3% in September, which translates into a year-over-year gain of 2.4%.
Industrial production, which is a broader measure of factory output, is also forecast to rise 0.3%. In annual terms, this leads to a 1.9% increase.
London will also produce its latest trade figures in the early hours of trading on Friday. The total trade deficit is projected to fall to £4.6 billion in September from a previously reported £5.6 billion the month before.
Britain’s trade deficit with non-European Union (EU) countries is forecast to slip to £4.5 billion from £5.83 billion.
The goods trade deficit is also expected to narrow to £12.8 billion from £14.25 billion.
Shifting gears, the National Institute for Economic and Social Research (NIESR) will release its latest estimate for UK GDP. The latest report will cover the three-month period ended October.
Other notable European releases Friday include French industrial output and nonfarm payrolls, as well as Italian industrial output numbers.
The North American session will feature two noteworthy releases, the first of which being the University of Michigan Consumer Sentiment Index for November. The preliminary reading is expected to come in at 100.7.
Energy traders will keep a close eye on the weekly Baker Hughes oil rig numbers. The weekly report is widely considered to be a proxy for the US shale industry.
The euro regained momentum on Thursday, notching its highest level of the week as the dollar nosedived against a basket of world currencies. The EUR/USD exchange rate was last seen trading at 1.1649, where it was up 0.1% on the previous close. At the time of writing, the pair faces immediate support at 1.1620. The common currency is expected to remain well supported above this level. On the opposite side of the spectrum, immediate resistance is likely found at 1.1660.
Cable also benefited from a weaker dollar on Thursday, where it climbed back toward the 1.3150 region. The pair was last seen trading at 1.3145, where it was little changed. A strong support level is located in the 1.2830 region. Resistance is found near the 55-day moving average of 1.3180.
After a massive bull rally, crude prices have moderated in recent sessions, with US barrels hovering just north of $57. The outlook on crude remains favourable, with the bulls looking to take out the 6 November settlement high of $57.35.