The U.S. dollar was seen easing back on Thursday. On the economic front, the ADP private payrolls showed that private sector hiring added 163k jobs during August. This was below forecasts of 195k that was estimated.
The ISM’s non-manufacturing PMI advanced to 58.5 beating estimates of 56.8. This was also an increase from July’s print of 55.6.
The economic calendar today will see the German industrial production numbers coming out. Forecasts point to a 0.3% increase on the month following last month’s decline of 0.9%.
The UK’s consumer inflation expectations report will also be coming out. The previous survey showed inflation expectations at 2.9%. The revised second-quarter GDP figures will be on the tap as well. No changes are expected to the Eurozone’s quarterly GDP growth rate of 0.4%.
A busy NY session will see the release of Canada and the U.S. unemployment figures. Canada is expected to add 5.1k jobs in August with the unemployment rate forecast to rise to 5.9%.
Meanwhile, the U.S. is forecast to add 193k jobs with the unemployment rate forecast to tick lower to 3.8%. The monthly average earnings are expected to rise at a slower pace of 0.2%.
EURUSD intraday analysis
EURUSD (1.1626): The euro currency closed with a doji on Thursday. Price action has become somewhat flat above the 1.1540 level of support. To the upside, the consolidation is seen just near the resistance area of 1.1656 – 1.1626 region. A breakout above this level is required in order for price action to test the next main resistance at 1.1730. To the downside, we expect the EURUSD to potentially retest the lower support at 1.1540.
GBPUSD intraday analysis
GBPUSD (1.2933): The British pound posted modest gains to test the 1.2950 region. The brief rally back to the unfilled gap from last week is likely to signal a decline back to the support at 1.2808. This will form a potential head and shoulders pattern. If the neckline support at 1.2808 breaks, the declines could be seen pushing the price to 1.2682 level. To the upside, if GBPUSD breaks out higher, we anticipate a test o 1.3031 marking the highs of August 30.
XAUUSD intraday analysis
XAUUSD (1201.21): Gold prices managed to post some gains on Thursday as price action rallied past the 1197.50 handle. With this level likely to turn to support, we expect further gains to push the price of the precious metal to 1219.75. In the near term, gold prices could remain flat within these two levels. A breakout above 1219.75 will likely push prices higher to the next main target of 1242.25. To the downside, we expect the support at 1183.29 to be tested.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.