Eurozone inflation fell more than expected in December

The Eurozone's inflation report showed that consumer prices slipped more than expected. Headline CPI fell to 1.6% which was more than the flash estimates that pointed to a decline of 1.7%. Core inflation, however, remained steady at 1.0%. The data comes ahead of the ECB meeting next week.

In the U.S. the Philly Fed manufacturing index increased to 17.0 on the index in January. This beat estimates of a modest increase to 9.7 and activity surged from 9.4 in December.

Japan released the revised industrial production numbers. Data showed that industrial production declined 1.0% on the month.

The European session is quiet with the UK's retail sales report on the cards. Forecasts point to a weak retail sales report showing a 0.8% decline on the month in December. The British pound maintained its gains amid news that some MP's wanted to block a no-Brexit deal.

The NY trading session will see Canada's inflation data coming out. The inflation data comes as the BoC decided to hold interest rates steady at its meeting a week before. Headline inflation is forecast to fall 0.4% on the month.

Data from the U.S. will cover the industrial production figures which are expected to rise 0.3% on the month. This marks a slower pace of increase after industrial production grew 0.6% previously

EURUSD intraday analysis

EURUSD (1.1391): The EURUSD currency consolidated near the minor rising trend line after breaking to the downside. The consolidation could potentially see the bearish trend resuming. The Euro currency could post further declines as it approaches the 1.1273 level of support to the downside. In case the Euro currency posts a reversal, we could expect the price to retest the breached price level of 1.1461 to establish resistance. Either way, the common currency looks to be trading flat once again.

AUDUSD intraday analysis

AUDUSD (0.7190): The Australian dollar retested the price level of 0.7191 after breaking below this level. Price action briefly posted gains above this level before settling back. A close below 0.7191 could potentially signal the downside in the Australian dollar. This could open the way for the price to test the lower support at 0.7022. Alternately, if price manages to close above 0.7191, the AUDUSD could be on track to maintain the gains for targeting 0.7292 where the next resistance level will be established.

XAUUSD intraday analysis

XAUUSD (1291.60): The consolidation in gold prices continued with price action trading tighter into a range. This potentially opens the upside to price action which could see the ascending triangle being validated. A close above 1296 could see price posting gains towards 1310 at the very least. Alternately, to the downside, the declines are likely to stall near the 1280 support which has managed to hold the drops so far.