OPEC Meeting Draws Attention On Friday

A high-stakes meeting of the Organisation of the Petroleum Exporting Countries (OPEC) will dominate headlines on Friday, which means energy traders will be on high alert. A deluge of PMI data will also make the rounds, giving investors the latest on the Eurozone and US economies.

France will kick off the economic calendar at 06:45 GMT with a report on first-quarter GDP. The French economy likely grew 0.2% in the first quarter, based on a median forecast.

The PMI data dump, courtesy of IHS Markit, will begin at 07:00 GMT and continue for the next hour. Investors can expect the latest manufacturing and services figures for France, Germany and the 19-member Eurozone.

The Eurozone Composite index, which tracks manufacturing and services output, is forecast to slide to 53.9 in June from 54.1 the previous month.

Shifting gears to North America, the Canadian government will report on retail sales and consumer inflation at 12:30 GMT. Retail receipts likely froze in April. Meanwhile, consumer inflation is forecast to rise 2.5% annually for May. Both reports are expected to have a direct impact on the performance of the Canadian dollar.

Markit will unveil preliminary US PMI data at 13:45 GMT. The Composite index is anticipated to drop 1.5 points to 55.1 for the month of June. A PMI reading above 50 signals expansion in economic activity.

OPEC is planning to announce a one million barrel-per-day increase in crude output on Friday when it concludes its biannual talks in Vienna. However, Iran is threatening to veto the deal in hopes of keeping current production steady. Global oil prices have been shaky all week in anticipation of the release.

Keeping with energy, Baker Hughes Inc. will report on the US oil-rig count at 17:00 GMT. The weekly report is seen as a proxy for the US shale industry.

EUR/USD

Europe’s common currency scooped up gains on Thursday after hitting fresh one-year lows. EUR/USD is now consolidating slightly above 1.1600 after bottoming at 1.1522. In terms of the technical indicators, immediate resistance is located at the weekly high of 1.1644.

GBP/USD

Cable also caught a tailwind higher on Thursday as the dollar weakened across the board. GBP/USD is now trading in the mid-1.3200 region after a brief stint at seven-month lows. The pair is now eyeing immediate resistance at 1.3270. On the flipside, immediate support is likely found at 1.3215.

USD/CAD

The greenback drifted lower against its Canadian counterpart on Thursday after gaining as much as 150 pips since Monday. USD/CAD is consolidating in the low 1.3300 region. The technical indicators may prove secondary on Friday should oil prices react to the OPEC verdict. As a commodity-driven currency, the Canadian dollar is heavily influenced by the price of oil.