The payrolls report for March saw the US economy adding 196,000 jobs during the month. This beat expectations of a 175,000 increase for the period.
The jobs data rebounded from February’s revision to 33k jobs. The unemployment rate held steady at 3.8% but wages grew just 0.1% on the month, missing estimates of a 0.3% increase.
Euro Subdued on German Data
Germany’s factory orders report on Friday saw a 0.7% increase in activity. This was slightly higher than the estimates of a 0.6% increase and follows a flat print from the month before. The common currency was, however, muted on Friday. The Sentix investor confidence report is due later today which could be the main event risk for the common currency.
Will the EURUSD Maintain Its Range?
The EURUSD has failed to break out from the resistance level at 1.1346. Friday’s price action briefly tested this level before prices plunged. However, we see that the consolidation has given rise to an ascending triangle pattern. A breakout from here could see price testing 1.1276 resistance in the near term.
UK Seeks Another Extension to Brexit
British PM May sought another request for an extension to the Brexit deadline on Friday. The UK now seeks the date of June 30th to give it more time to get the deal through parliament. Currently, the UK is expected to leave the EU on the 12th of April. An emergency EU summit is to be held on 10th of April as any extension needs the approval of all 27 EU leaders.
Can GBPUSD Rebound from the Support?
The currency pair lost 0.29% on Friday after price touched down to the support area of 1.2992 – 1.2971 before pulling back. Currently, cable is seen attempting to rebound higher. Price action remains trading sideways within the support area and the resistance level of 1.3312. We expect this range to hold with some upside for the British pound.
Gold Prices Close the Week Flat
The precious metal closed flat on Friday despite the initial volatility from the payrolls report. The overall strength in the US dollar and the mixed market sentiment kept the precious metal in check.
Can XAUUSD Breakout from the Consolidation?
XAUUSD closed on Friday with a doji pattern, marking a whole week where price remained flat near 1285 support. The current rebound off this level is pushing gold prices slightly higher. We expect price to test the 1300 – 1305 level in the near term but further gains are unlikely. Watch for a reversal pattern near the resistance area for a possible reversal back to 1285 support and an eventual breakdown lower.