Daily Forex Market Preview, 08/12/2017
The U.S. dollar was seen strengthening off the back of investor optimism, due to the fact that the tax benefits could help boost the economy. The U.S. dollar index rose to a one-month high ahead of the payrolls report that is due to be released later today.
Economists polled expect to see the U.S. unemployment rate staying steady at 4.1% while wage growth is expected to accelerate. The payrolls report comes ahead of next week’s Fed meeting where interest rates are widely expected to be hiked.
In the UK, the British pound continued to trade volatile on the Brexit related news. Manufacturing production and construction output data is expected to be released today. Forecasts put the manufacturing production to rise just 0.1% on the month while, construction output is expected to rise 0.2%.
EURUSD intra-day analysis
EURUSD (1.1763): The EURUSD continued to post declines to the downside for the third consecutive day. Price action is seen nearing the support level at 1.1704. This will see a retest of the support level which previously served as a break out from the descending wedge pattern that was formed. In the near term, EURUSD’s gains are limited to the 1.1843 – 1.1822 level where resistance could be formed. To the downside, the declines could see EURUSD push lower towards the support level at 1.1710 – 1.1688.