The U.S. Dollar was seen posting gains on Friday sending most of the currencies lower toward the close. Data from the Eurozone showed that flash manufacturing and services PMI came out mixed. Flash manufacturing PMI for September was seen to be weaker at 53.3 while services PMI was in line with expectations.
The British Pound fell on comments from PM May. Following a failed attempt to push for a favorable Brexit deal in Salzburg last week, Theresa May said that the UK and the EU were at an impasse on Brexit.
The NY trading session saw the release of the inflation data from Canada. Headline inflation dipped 0.1% as expected. The trimmed mean CPI was up 2.1% on the year. Core retail sales advanced 0.9% beating estimates of a 0.6% increase. Headline retail sales improved by 0.3% as expected.
The markets open to a quiet Monday. Economic data is sparse with Japan and China bank holidays. Most of the data is the second tier and is unlikely to impact the markets much.
The German Ifo business climate data will be coming out during the early European trading session. The recent downtick in the Eurozone’s consumer confidence could likely dent the sentiment in the German Ifo business climate as well.
Data from Canada will see the release of the wholesale sales report. No scheduled reports are coming out of the U.S. today.
EURUSD intraday analysis
EURUSD (1.1742): The EURUSD currency pair breached the resistance level of 1.1745 on Friday before easing back. With the resistance level breached, we expect price action to consolidate near this level in the short term. The bias remains to the upside as long as the previous low of 1.1650 is not taken out. We expect the euro currency to run further if support is established near 1.1745 – 1.1718.
GBPUSD intraday analysis
GBPUSD (1.3078): The GBPUSD extended sharp declines on Friday. The currency fell on the Brexit negotiations hitting an impasse. However, the technical bias remains to the upside. The current decreases could see the GBPUSD stall near 1.3208 where support is likely to be formed. A rebound off this level will mark a retest of the previously held resistance level. To the upside, 1.3250 will remain a key obstacle. Clearing this resistance could push GBPUSD to further gains.
XAUUSD intraday analysis
XAUUSD (1197.00): Gold prices fell sharply on Friday, but price action was contained near the 1196.00 region. The ascending triangle pattern is still valid, and we expect the rebound to push gold prices higher to 1212.20 region. A breakout above 1212.20 could trigger the ascending triangle pushing the price toward 1238.00 region which marks the minimum upside bias.