The U.S. dollar was seen recovering from the losses on Thursday. The reversal came following the release of the FOMC meeting minutes.
Economic data on the day showed that the ECB officials were concerned about the risks of the uncertainty from the global trade policies. However, officials remained fairly optimistic that growth would remain firm.
Economic data saw the release of the flash manufacturing and services PMI from the Eurozone. While the flash service PMI was in line with expectations, manufacturing activity showed a slight slowdown. In the U.S. new home sales rose 627k missing estimates of 643k. The previous month’s figures were revised higher to show 638k print.
The economic data for the day will see the release of the German final GDP figures for the second quarter. Economists forecast no change with the German GDP expected to rise 0.5% during the three months ending June.
Later, in the NY trading session, the U.S. durable goods orders report will be released. Core durable goods are forecast to rise 0.5% by following a 0.2% gain in the previous month. Headline durable goods orders are expected to show a 0.7% decline during the month. This marks a 0.8% increase in the previous month.
The annual Jackson Hole Symposium is expected to start off today. The Fed Chair Jerome Powell is expected to speak today at the event.
EURUSD intraday analysis
EURUSD (1.1553): The EURUSD currency pair closed on a bearish note on Thursday. The decline came following the rally in the previous days. The common currency closed back at the recently cleared level of 1.1540. With the daily Stochastics printing a bearish divergence, we expect further declines in the near term. For the moment, the EURUSD is likely to maintain its sideways trend within 1.1626 – 1.1540 region. A breakout from this range could trigger further gains or losses.
USDJPY intraday analysis
USDJPY (111.45): The USDJPY extended the gains strongly on Thursday and the bullish momentum is expected to continue to push the currency pair higher in the near-term. The main resistance to the upside is seen at 112.18 on the daily chart. On the 4-hour chart, the USDJPY managed to close back above the support/resistance level of 111.13 – 110.85. Any near-term declines are likely to stall back at this level and it would confirm the upside bias in the currency pair.
XAUUSD intraday analysis
XAUUSD (1187.56): Gold prices turned bearish following the doji candlestick the day before. Although the 4-hour chart currently is signaling a possible bullish reversal, we expect to see gold prices test the 1180.25 level of support. Establishing support here could potentially keep the upside bias intact. The 4-hour falling price is also likely at the risk of price breaking out to the upside. But for this to occur, gold prices will need to form a reversal around 1180.25. To the upside, the resistance level at 1211.50 remains the target.