The latest monthly payrolls report for January saw 225k jobs being added during the month. This was well above the forecasts as the unemployment rate ticked higher.
The unemployment rate rose to 3.6%. This was due to an increase in the participation rate which rose 0.2 percentage points. The average hourly earnings increased by 3.1% on the year.
German Industrial Production Falls in December
The December industrial production data for Germany saw a larger than expected slump. Data from the Federal Statistics Office showed that industrial production was down 3.5% on a month over month basis in December.
This was down from a 1.2% increase from the month before. The data follows a weak factory orders report earlier in the week.
EURUSD Falls to a 4-Month Low
The common currency touched down to the support level of 1.0952, marking a four-month low. Price action could now consolidate near this level, with a possibility that a rebound could occur.
The correction will, however, confine price action to the range of 1.1000 and 1.0952. A breakout from this range should determine the direction going forward.
Oil Traders Await Russia’s Decision on Curbing Oil Production
Crude oil traders are bracing for an announcement from Russia about production cuts. OPEC member nations are mulling over production cuts in response to the economic impact of the coronavirus.
Russia’s energy minister, Alexander Novak, said on Friday that a decision could be made this week.
WTI Prices Forming a Bottom
Crude oil prices are consolidating near the price level above the 50.00 region. This comes following a sharp sell-off in crude oil prices. Given the current set up, there is scope for oil prices to retrace to the upside.
A breakout above 51.65 will confirm the upside toward the 54.75 handle.
Gold Prices Rebound into the Week’s Close
The precious metal was paring losses as it maintained a modest bullish streak. Still, price action remains under pressure. Gold prices gained momentum after the payrolls report was released.
The gains come as investors pared gains on the riskier equity assets.
XAUUSD Retraces Trend Breakout
The precious metal retraced losses and moved back to the breakout area from the minor trend line. The price region between 1573 – 1569 is now acting as resistance.
A reversal off this level could push gold back to the pivot lows of 1548. Alternately, an upside breakout will shift the bias back to the upside.