Euro, US Data In The Headlines On Thursday

Investors will get a taste of data from both sides of the Atlantic on Thursday, with the Eurozone and United States scheduled to release important figures for the months of November and December.

Action begins at 08:00 GMT with a Spanish report on industrial output. This will be followed up one hour later by a report on retail sales by the Italian government.

At 10:00 GMT, the Greek government will report on the national unemployment rate for the month of October. At the same time, the European Commission’s statistical agency will report on industrial production. Output in the 19-member euro area is forecast to rise 0.8% in November after climbing 0.2% the month before. In annualized terms, this translates into 3% growth.

The Portuguese government will issue a report on consumer inflation at 11:00 GMT.

One of the most closely watched reports of the session will come from the European Central Bank (ECB), which will unveil the minutes of its most recent policy meetings.

Shifting gears to North America, the US government will report on producer price inflation and initial jobless claims at 13:30 GMT. Meanwhile, the Financial Management Service will issue its monthly budget state for December at 19:00 GMT.

In terms of monetary policy, Federal Reserve Bank of New York President William Dudley will deliver a speech at 20:30 GMT.

Earlier in the day, the Australian government reported a sharp pickup in retail sales for November, signaling renewed strength in the domestic economy. Receipts at retail stores rose 1.2% from October, a growth rate that was three times as fast as the median forecasts. Sales were up 0.5% a month earlier.

EUR/USD

The euro returned to strength in mid-week trading, as the EUR/USD found buyers around the 1.1925 region. The pair briefly touched the psychological 1.2000 level before paring gains later in the session. The EUR/USD was trading around 1.1964 in the Asian session, having gained 0.1% from the previous close.

AUD/USD

Upbeat retail sales boosted the Australian dollar on Thursday. The Aussie climbed 0.3% against the US dollar to reach 0.7865. The AUD/USD pair is currently trading at its highest level since September. The technical indicators show bullish upside for the Australian currency now that prices have breached the 10-day SMA of 0.78267. The next zone of resistance is likely found around 0.7900.

GBP/USD

After challenging 1.3600 earlier this week, the GBP/USD lost momentum on Wednesday to fall back toward 1.3500. Despite the decline, cable remains in an uptrend, helped by a progressively weaker US dollar. The pair faces immediate support at the 1.3490 region, followed by a stronger support level at 1.3400. Immediate resistance is located at 1.3600.