Markets hold in a mixed mode ahead of closely watched US Non-Farm Payrolls data which is expected to give more clues near-term interest rate expectation. The greenback was at the back foot vs the basket of major currencies in early Thursday’s trading, after registering significant gains earlier in the week, on hawkish comments from top Fed officials about near-future rate policy. Investors are awaiting the figures from US labor sector which are expected to justify recent hawkish comments about monetary policy stance, if data beat the expectations.
The Euro is losing traction in early European trading after hitting session high at 1.1166 against dollar in Asia, following Wednesday’s bullish close. The pair so far holds below strong technical resistance at 1.1169, break of which would have stronger impact on short-term bears.
Sterling rose on Wednesday, supported by improved consumer confidence which rose to -7 in August from July’s release at -12. Also, rising UK’s house prices, which rose 5.6% in August, compared with the same month last year, faster than July’s 5.2% rise. Positive numbers of UK economic indicators add to signs that UK’s economy well in the wake of shock Brexit vote in June, which was expected to show stronger negative impact at the economy in the first months after the referendum.
The dollar remains firm against Japanese yen and attempts towards Wednesday’s fresh one-month high at 103.53, following overnight’s shallow correction, which was contained above psychological 103.00 support. The greenback was supported by strong US ADP data on Wednesday, but needs confirmation from US NFP data to resume its near-term recovery from 100.00 support zone.
US Crude oil was the top loser of Wednesday’s trading , falling more than 3% on surprisingly strong rise in US Crude stockpile which showed build of 2.3 million barrels in the past week, well above forecasted 0.9 million barrels build.
Oil price was slightly higher in early Thursday trading, however, consolidation was narrow and capped by strong technical barriers. Oil remains under pressure on global oversupply and strengthening dollar, with further fall of the price seen likely in the near-term. Performance of the dollar, in light of awaited US jobs data and signals for near-term monetary policy steps, would affect oil prices.
Highlights of the day
Europe
Thursday’s calendar is full as usual, with series of PMI data from the Eurozone members, being the highlight of European session.
Over 30 manufacturing PMIs are going to be released today. The Eurozone index came at 51.7, slightly below the forecast at 51.8, while the rest of EU countries showed mixed releases of Manufacturing PMI’s.
German data came along with expectations, while French and Italian releases showed downbeat numbers.
On the other side, Manufacturing PMI from Spain and Switzerland beat expectations.

America
US Initial jobless claims are expected to hold steady in the August 27 week, at a consensus 265,000 versus 261,000 in the prior week and in line with the four-week average of 264,000.
US ISM Manufacturing PMI is forecasted at 52.0 in August, below July’s 52.6 release. Data is due at 14:00 GMT.
Important levels

EURUSD
Near-term price action holds within narrow consolidation range, with the downside coming under pressure again, after recovery attempts were capped at 1.1165, guarding strong daily cloud top barrier at 1.1169. The pair may spend more time in directionless mode, awaiting results from US jobs data for fresh direction. Overall structure remains negative and eyes strong support at 1.1118, break of which would trigger fresh bearish acceleration towards 1.1045/00 zone.
Conversely, firm break above daily cloud top at 1.1369 would open way for extended recovery and expose barriers at 1.1216 and 1.1239.

GBPUSD
Cable maintains near-term positive sentiment, boosted by upbeat UK data that triggered strong rally above pivotal 1.3200 resistance zone. Near-term focus shifts towards key barriers at 1.3272/77, break of which would signal further recovery.
US Crude Oil
Oil price remains under strong pressure and accelerated further on Wednesday after stronger than expected build of US Crude stocks. Two-day bearish acceleration found footstep at $44.49, above which narrow consolidation is under way. Descending daily cloud capped consolidation for now, with downside being in near-term focus. Next strong support lies at $44.15, followed by Fibo 61.8% support at $43.98.
Falling cloud base offers strong resistance at $45.04, followed by $45.58 and $46.25 barriers., Market Analysis