Economic data remains in the spotlight on Friday, with Europe and Canada set to deliver high-profile reports on trade and employment.
Action begins at 06:00 GMT with a report on German industrial production. Factory output in Europe’s largest economy likely rose 0.3% in April, based on a consensus forecast. In annualized terms, this translates into a gain of 2.8%.
The German government will also report on international trade at 06:00 GMT. Berlin’s trade surplus likely narrowed to €21 billion in April from €22 billion the month before. Exports are projected to fall 0.2% month-on-month. Imports, meanwhile, likely rose 0.6%.
France’s INSEE will report on industrial production later in the morning. The Eurozone’s second-largest economy likely saw its output rise 0.3% month-on-month during April.
The Bank of England (BOE) will be releasing a report on consumer inflation expectations at 09:30 GMT. Inflationary trends are closely monitored by investors because they tie into expectations about monetary policy.
On the topic of monetary policy, the European Central Bank’s Yves Mersch will deliver a speech at 08:15 GMT.
Shifting gears to North America, the Canadian government will report on housing starts, capacity utilization and employment between 12:15 GMT and 12:30 GMT. The employment report is expected to show a net gain of 17,500 jobs for the month of May following a decline of 1.1% the month before. The jobless rate is projected to hold steady at 5.8%.
Meanwhile, the US government will report on wholesale inventories at 14:00 GMT. Inventory levels for April are forecast to remain unchanged.
Energy traders will be keeping a close eye on the weekly US oil rig count, which provides a snapshot of domestic shale production. Rising rig counts are usually seen as bearish for oil prices.
EUR/USD
The euro extended its recovery on Thursday, with prices rebounding nearly 300 pips from last week’s swing low. At the time of writing, EUR/USD was hovering around 1.1800 with the bulls eyeing the 1.1830 level. On the opposite side of the ledger, immediate support is located at 1.1767.
USD/CAD
The Canadian dollar failed to rally on Thursday even as oil prices made a large comeback. USD/CAD reached a high near 1.3000 before backtracking toward the 1.2980 level where it currently stands. The pair’s next target is the psychological 1.3000 region. A clean break above this level could lead prices toward 1.3050.
AUD/USD
The Australian dollar underwent a correction on Thursday after prices reached their highest level in about six weeks. AUD/USD topped out near 0.7680 but has since fallen back to 0.7620. The pair faces immediate resistance in the 0.7660-0.7675 region. On the opposite side of the ledger, the recent low of 0.7590 is likely to present immediate support.
