The European trading session saw the Swiss National Bank leaving its monetary policy unchanged. The SNB’s decision to leave interest rates unchanged was widely expected.
The Norges bank monetary policy meeting saw interest rates being hiked. Norway’s key interest rates now stand at 0.75% from 0.50% which marked a record low in interest rates history for Norway.
Retail sales data in the UK rose 0.3% on the month. This beat estimates of a 0.2% decline. Previous month’s retail sales were also revised higher to show a 0.9% increase.
Data from the U.S. showed existing home sales increased by 5.34 million. The data was slightly below the median estimates.
The economic calendar today will see the release of the flash manufacturing and services PMI reports from the Eurozone. Data is expected to show no significant changes to the business activity in the sectors.
The NY trading session is relatively quiet. Canada’s inflation data will be the significant event of the day. Headline inflation is forecast to decline by 0.1% on the month. This follows a 0.5% increase in inflation during the month before.
Retail sales reports are also due. Headline retail sales in Canada are expected to rise 0.3% following a 0.2% decline in the previous month. Core retail sales are expected to increase by 0.6% after a 0.1% decline previously.
EUR/USD intraday analysis
EURUSD (1.1782):
The EUR/USD currency pair posted gains on Thursday. Price action broke past the resistance level at 1.1730 with a strong bullish candlestick. However, the gains are unlikely to hold unless there is a follow through. In the near term, the EUR/USD is at risk of dipping back to 1.1730. Establishing support at this level is crucial for price action to extend gains toward 1.1960 – 1.1920 level of resistance. This is most likely going to be the next target. To the downside, failure to hold near 1.1730 could push EUR/USD back to trading in its range.
GBP/USD intraday analysis
GBP/USD (1.3268):
The GBP/USD currency pair breached past the resistance level of 1.3205. The breakout above this level is likely to see price action continue to extend the gains further. Support is expected to be established at 1.3205 following which further gains could be expected. The next primary target is seen at 1.3754 which marks a retest of the support level that previously gave way to the declines. To the downside, a drop below 1.3205 could still keep GBPUSD biased to the upside.
XAU/USD intraday analysis
XAU/USD (1209.03):
Gold prices were seen gradually inching higher. However, price action continues to remain trading subdued for the most part. The long-time consolidation at the current levels likely indicates a potential breakout to the upside. The resistance area of 1212.20 remains a key price level. A breakout above this level will trigger the ascending triangle pattern. The minimum upside target is seen at 1238.00.