EUR/USD: The European currency fell slightly against the US dollar on Thursday due to positive US jobless claims data, while weak European macroeconomic figures continue to undermine demand for the EUR. The number of Americans filing new claims for unemployment benefits dropped by the most in three months last week, suggesting the labor market recovery was regaining momentum after a recent slowdown because the wave of Covid infections began to subside. Germany published August Industrial Production, which fell by 4% per month, much worse than the market expectations. The annual reading was also worse than expected. Today, the US releases an important Nonfarm Payrolls report. It’s expected that the country added 488 thousand new jobs in September. The Unemployment Rate is predicted at 5.1 percent. The local resistance level can be seen at 1.1575. If the price reaches this level and rebounds from it, it can be considered a catalyst for further decline towards 1.1500.
USD/JPY: The US dollar rose against the Japanese yen yesterday ahead of US payrolls data today. Meanwhile, the negative Japanese Household Spending and Trade Balance data pressured the yen, adding to the upside in the pair. However, the main risk event for the pair remains the US Nonfarm Payrolls report, which will likely seal in the Fed’s bond tapering for November. The local support level can be seen at 111.50. If the price reaches this level and rebounds from it, it can be considered as a trigger to further growth towards 112.10.
XAU/USD: Gold fell on Thursday due to rising Treasury yields and market bets that the US Federal Reserve may soon start winding down its economic support. Gold price action in the last week was dull. The metal keeps trading within a range, but this will be likely resolved today after the publication of the US report. The local support level can be seen at $1748. A breakout below could take the pair towards $1730.