Canada retail sales and inflation

The U.S. dollar was trading mixed on Thursday. After initially posting strong gains, the greenback eased towards the close of the day. Economic data showed that UK's retail sales fell 0.5% on the month missing estimates of a 0.1% increase. In the U.S., the Philly Fed manufacturing index rose to 25.7 on the indexbeating estimates of 21.6.

The economic data for the day ahead will see the release of the German PPI figures. Economists forecast that producer prices rose 0.3% on the month, marking a slower pace of increase compared to 0.5% registered the month before.

In the NY trading session, Canada will be releasing its inflation and retail sales figures. Headline inflation rate as measured by CPI is expected to advance 0.1% on the month, marking the same pace of increase as the month before. Retail sales are tipped to rise 1.0% on the month following a 1.2% decline the month before. Core retail sales are expected to advance 0.6% after posting a 0.1% decline in the previous month.

EURUSD intra-day analysis

EURUSD (1.1650): The EURUSD currency pair drifted lower on Thursday as price action touched intraday lows of 1.1575. However, the currency pair managed to recover to close slightly higher from the open. The consolidation in the currency pair is expected to continue and the rebound off 1.1600 is expected to keep price action supported to the upside in the near term. The resistance at 1.1686 could be tested in the near term. A break above this level is required in order to ascertain the upside bias in the near term.

USDJPY intra-day analysis

USDJPY (112.38): The USDJPY currency pair fell briefly below 112.28 support before recovering back. The rebound of this level failed to see the currency pair make any major gains. Therefore, we expect to see the U.S. dollar extending the declines against the yen. A break down below 112.28 could signal a near-term decline to the lower support at 111.13 - 110.85 regions. In the near-term, the currency pair could be seen maintaining a sideways range within the levels.

XAUUSD intra-day analysis

XAUUSD (1219.86): Gold prices continued to extend the declines as price action slipped below the 1219 region. The doji candlestick on the 4-hour chart was followed by a bullish close. While price action managed to pull back from the lows, the current gains could see a move to the upside. Gold prices could be seen rallying to 1242 level of support where resistance is likely to be established. To the downside, failure to clear the 1219 region could signal further declines in gold prices which could push the price of the precious metal lower to 1200.