The U.S. dollar managed to post gains on Friday reversing the losses from earlier in the week. On the economic front, the U.S. retail sales advanced 0.1% on a month over month basis. This missed estimates of a 0.4% increase. Core retail sales also slowed, rising just 0.3% on the month. Core retail sales also came in below estimates of 0.5%.
Other data sets over the day included the import prices which declined 0.6%. Industrial production was the bright spot which advanced 0.4% on the month.
Looking ahead, the week starts off with the Eurozone’s final inflation figures. Headline CPI is expected to rise 2.0% while core CPI is forecast to increase by 1.0%.
Data from the U.S. include the Empire State manufacturing index which is expected to ease to 23.2.
EURUSD intraday analysis
EURUSD (1.1634): EURUSD closed on a bearish note on Friday practically giving up the gains notched from Thursday. By Friday’s close price action was seen closing slightly below the rising trend line. A continued decline could see price action eventually falling back to the support level of 1.1540. A breakout from the increasing trend line could potentially suggest further declines if the common currency fails the support at 1.1540.
GBPUSD intraday analysis
GBPUSD (1.3080): The GBPUSD currency pair gave up the gains sharply on Friday. However, as expected, a retest of the recently breached double top pattern signals further upside. If price manages to rebound near 1.3036 to form support, we could expect to see further gains pushing the cable toward 1.3205 resistance from July 26th highs. To the downside, a break down below 1.3036 could indicate price action settling back into the range. The lower support remains at 1.2808.
XAUUSD intraday analysis
XAUUSD (1195.71): Gold prices extended the declines for the second day closing bearish on Friday. The fake-out to the upside was met with quick selling as the precious metal closed back below the 1197.50 level. We expect to see the weakness lingering in gold prices remaining subdued below 1197.50 region. The downside support at 1183.30 could once again come into focus.