The U.S. dollar fell against most major currencies on Friday as weak U.S. data on inflation and retail sales lowered investors’ expectations for more rate hikes by the Federal Reserve this year.
Retail sales rose 0.4% in April, the Commerce Department said, falling short of economists’ expectations for a 0.6% increase.
At the same time, the Labor Department reported that the annual rate of inflation slowed to 2.2% in April from 2.4% in March.
During the weekend intelligence agencies in Europe and the US were on alert after a global scale cyber-attack took place against major companies and organisations all over the world. So far, 200,000 computers across 150 countries are known to have been infected in the first wave of the cyber attack. British intelligence officials warned businesses on Sunday to brace for further cyber attacks this week on a potentially “significant scale”.
Other key U.S. economic data in the week ahead could provide further evidence if the world’s largest economy is strong enough to withstand a rate hike as early as next month, with the Empire State and Philly Fed manufacturing surveys in focus.
The euro gained against the dollar, rising by 0.64% to 1.0931 and recovering from Thursday’s two-week lows of 1.0838, after data on Friday showed that U.S. retail sales grew less than expected last month and core inflation fell, raising doubts over whether the Fed can hike rates two more times this year.
Today, the U.S. is to release a report on manufacturing activity in the New York region, while later on in the week, housing data along with the Empire State and Philly Fed manufacturing surveys will be in focus.
Pivot: 1.0899 Support: 1.0899 1.088 1.085 Resistance: 1.094 1.096 1.098 Scenario 1: long positions above 1.0899 with targets at 1.0940 & 1.0960 in extension. Scenario 2: below 1.0899 look for further downside with 1.0880 & 1.0850 as targets. Comment: the RSI shows upside momentum. The pair is breaking above a pennant continuation pattern. 
Gold
Weakness in the dollar provided a boost on gold prices, following subdued data on U.S. retail sales and inflation, as this created doubts on whether the Federal Reserve can hike rates two more times this year.
The precious metal ended Friday close to $1228 per ounce, recovering from lows posted last week at $1214 per ounce.
In the week ahead, gold traders will be shifting their attention towards further housing, manufacturing and employment data releases from the U.S. in an attempt to estimate the number of rate hikes to be made by the Fed this year.
Pivot: 1225.75 Support: 1225.75 1222.5 1220 Resistance: 1232 1235 1237 Scenario 1: long positions above 1225.75 with targets at 1232.00 & 1235.00 in extension. Scenario 2: below 1225.75 look for further downside with 1222.50 & 1220.00 as targets. Comment: the RSI is around its neutrality area at 50% 
WTI Oil
Crude oil prices gained for a second day on Friday, ending the day close to $47.84 a barrel, after touching their highest since May 3 at $48.22 on Thursday.
Prices have been supported by the arrival of the summer driving season as well as the increasing likelihood that key crude producers will extend output cuts beyond an agreed-on June deadline when they meet later this month.
Data on U.S. inventories on Tuesday and Wednesday will be in the spotlight as investors try to gauge the strength of demand in the world’s largest oil consumer.
Pivot: 48 Support: 47.25 46.85 46.5 Resistance: 48 48.5 48.9 Scenario 1: short positions below 48.00 with targets at 47.25 & 46.85 in extension. Scenario 2: above 48.00 look for further upside with 48.50 & 48.90 as targets. Comment: the RSI is mixed and calls for caution. 
US 500
The main U.S. stock indices were mixed on Friday, as gains in the Utilities, Technology and Basic Materials sectors led shares higher while losses in the Industrials, Financials and Consumer Services sectors led shares lower.
At the closing of the NYSE, the Dow Jones Industrial Average posted a drop of 0.11%, while the S&P 500 index fell 0.15%, and the NASDAQ gained by 0.09%.
Apple Inc (NASDAQ:AAPL), McDonald’s and Visa posted some of the best performances of the day, adding to their values 1.4%, 0.80% and 0.68% respectively.
A possible reaction could be seen by the markets in the coming days, as the threat of further cyber-attacks might have an impact on investors’ risk-appetite.
Pivot: 2384 Support: 2384 2379 2375.5 Resistance: 2393 2397 2400 Scenario 1: long positions above 2384.00 with targets at 2393.00 & 2397.00 in extension. Scenario 2: below 2384.00 look for further downside with 2379.00 & 2375.50 as targets. Comment: the RSI is mixed with a bullish bias.