EURUSD Consolidating Gains Ahead of US NFP?

* Euro surged higher Intraday against the US Dollar, as the ECB reduced the deposit rates by -0.10% and did not increase the QE.

* Today, the German Factory orders released by the Deutsche Bundesbank posted an increase of 1.8% in October 2015, more than the forecast of 1.2%.

* Today, there is a major release in the US, as the nonfarm payrolls report will be published by the US Department of Labor.

German Factory Orders

Today, the German 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 an increase of 1.2% in October 2015, compared with the preceding month. However, the outcome was above the forecast, as the German Factory orders rose 1.8%.

When we look at the yearly change, the market was aligned for a decline of -2.5% in October 2015, compared with the same month a year ago. In a report published by Bundesbank, German economy picking up at an increasing pace. The report stated that “the Bundesbank’s economists expect Germany’s real gross domestic product (GDP) to grow by 1.7% this year, followed by a rise of 1.8% in 2016 and 1.7% in 2017”.

Overall, the report was positive, and may help the Euro moving ahead. There were solid gains noted in EURUSD yesterday post the ECB interest rate decision, and we need to see how buyers maintain the same.

US Nonfarm Payrolls

Today, the nonfarm payrolls, which presents the number of people on the payrolls of all non-agricultural businesses will be reported by the US Department of Labor with an expectation of a 200K increase in Jobs. Any miss in the forecast may call for more gains in EURUSD.

Technical Analysis – GBPUSD

The EURUSD pair traded above the 1.0800-20 resistance area recently, and looks set for more gain. Currently, the pair is consolidating and setting up for the next move. On the downside, support now lies at 1.0800-20, and resistance on the upside can be at 1.0900-10.