Global equity markets traded under strong pressure on Friday, as weak data from China and Europe heightened concerns about the outlook for the global economy, besides there is some expert outlooks that demonstrates an increase in the risk of recession in the United States. In this sense, the current data of the American economy are the focus of markets and traders. During the day, Europe was trading under heavy pressure, and futures for US markets declined during the trading day, indicating a negative start for Wall Street, which opened deep into the red.
On Forex USD dollar is the complete session leader. US dollar is trading higher against most major currencies and emerging market currencies. The US dollar strengthened against the Canadian dollar, New Zealand dollar, the European currency, the British pound.
The dollar index recorded a maximum of this year on November 12 around 97.70. On that day, the dollar index closed above 97.50, but failed to update this level again. Of course USD dollar looks kind overbought but now it is considered the main save-heaven asset, although it approached the area several times in the last week.
However, we wonder how today the US equities will be able to close the trading week. For the SP 500 index, the technical situation is not easy and much more interesting. The index is testing an important support zone of 2600-2630 points and if the market fails to keep above this mark, this will mean a strong negative signal that can frighten investors who instead of the Christmas rally will get negatively closed December. The risk of this scenario is pretty much high and all this might depend on today daily/weekly close.
As for US statistical data, they were published during the time of this article writing. Retail sales excluding automobiles surged 0.9 percent last month after an upwardly revised 0.7 percent increase in October.
However, the second part of today data disappointed somewhat. On the heels of the dramatic slowdown in Chinese production output, and after slowing in September and October, US Industrial Production was expected to rebound modestly in November. The headline industrial production rose 0.6%.
However, we are still here to watch how the markets interpret these data and close the trading week.
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