Canada’s unemployment rate rises
|The U.S. dollar managed to hold its ground but, was trading mixed on Friday. The EURUSD posted declines into the close while the equity markets saw another volatile day. On the economic front, data from the UK showed that manufacturing production rose 0.3% on the month as expected. The previous month's figures were revised down from 0.2% from the initially reported 0.4% increase. Construction output seemed to be better, rising by 1.6%, which beat estimates of a 0.7% increase while industrial production declined 1.3% on the month.
Canada's monthly employment figures surprised the public to the downside. The economy was seen losing 88,000 jobs in January with the unemployment rate rising to 5.9% up from 5.7% in December.
Looking ahead, the economic calendar is relatively quiet today with no major releases expected. Switzerland will be releasing its monthly inflation data. Forecasts predict a 0.1% decline in consumer prices. Later in the day, Japan's producer price index data will be coming up with forecasts showing a slower pace of growth at 2.7%.
EURUSD intra-day analysis
EURUSD (1.2286): The EURUSD closed on Friday with the doji pattern. The prices were trading within the range from Thursday. The doji pattern comes after the EURUSD fell sharply through the week. A reversal off this doji pattern could potentially signal a short-term retracement in the EURUSD. To the upside, the gains are likely to be limited to the 1.2363 level which previously served as support. Establishing resistance at this level could signal the end of the correction with prices likely to correct lower. Support at 1.2090 will remain the initial target for the decline in the EURUSD.
GBPUSD intra-dayanalysis
GBPUSD (1.3867): The GBPUSD currency pair reached the target of 1.3855 on Friday. Price action closed below this level posting a modest reversal. The inside bar pattern formed on Friday's close indicates that prices could be seen retesting the break out level of 1.2855. A reversal off this level could signal further downside in GBPUSD. Support at 1.2611 - 1.3589 will be the next downside target in the currency pair. In the event that GBPUSD manages to close above 1.3855 on a daily basis, we could expect some sideways consolidation taking place. The downside bias will be invalidated only on a close above 1.3978.
NZDUSD intra-day analysis
NZDUSD (0.7272): The NZDUSD currency pair was seen forming a bottom with prices attempting to retrace the losses. In the short term, the reversal could see NZDUSD rising back to the price area of 0.7333 - 0.7280. With resistance most likely to be established here, NZDUSD could be seen either moving sideways in the short term or posting a reversal off this level. The downside target for NZDUSD remains at 0.7160 with the potential for further declines. This could push the kiwi dollar towards the next lower support level at 0.6943.
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