* Euro is trading with a positive tone against the US dollar, and it looks like set for more gains.
* The next path may be dependent on an important release, which is lined up later today.
* The US nonfarm payrolls will be released by the US Department of Labor, which is expected to increase by 190K in Jan 2016.
* Today, the German Factory orders released by the Deutsche Bundesbank, posted a decline of 0.7% in December 2015, more than the market expected.
German Factory Orders
Today, the Factory orders, which is an indicator that includes shipments, inventories, and new and unfilled orders was released by the Deutsche Bundesbank. The market was expecting a decline of 0.5% in December 2015, compared with the preceding month. However, the result missed the mark, as the decline was higher. The Factory orders declined by 0.7% in Dec 2015.
When we consider the yearly change, the German Factory orders was expected to decline by 1.4% in December 2015, compared with Dec 2014. However, the result was again disappointing. The German Factory orders declined by 2.7%.
Overall, the report was not impressive, which ignited a minor selling pressure on the EURUSD pair.
US NFP
Today, there is a major news release coming out of the US. The nonfarm payrolls will be released by the US Department of Labor. It shows the number of new jobs created in all non-agricultural business. The market is positioned for a rise of 190K jobs in Jan 2016.
Let us see if the result matches the forecast or not. If the US NFP posts a lower reading, then the US dollar may head down moving ahead.
Technical Analysis – EURUSD
The EURUSD pair recently jumped higher and traded as high as 1.1240 where it found selling interest. And, after the German Factory orders, there was a minor downside reaction. The pair is well supported above the 1.1800 levels, which is a positive sign. As long as the EURUSD pair is above the mentioned
support area, there are chances of it trading higher. If the US NFP misses the mark, then we can see a spike in EURUSD.
