The US economy increased the number of jobs by 390k in May, the fresh NFP showed, better than average expectations (325k) but worse than April's figures (436k). Total employment is only at 822k highs before the pandemic hit, and the labor market is increasingly bottoming out. However, we point to a few spots that add to the arguments of those who see a reversal of the economic cycle. The annual rate of wage growth has slowed down from 5.5% to 5.2% against an inflation rate of 8.3%. In other words, wages are hardly fuelling inflation in recent weeks. Manufacturing, often the flagship of business cycles, added 18,000 jobs, three times weaker than in the previous two months, clearly losing momentum. The share of the economically active population rose to 62.3% as more people struggled to find work amid rising prices and depleted savings accumulated during the pandemic thanks to stimulus packages. This is not sound economic news, indicating a slowing economy. Initially, the markets may well be at the mercy of a sell-off in risky assets. But the more weak data we see, the more attention we should pay to FOMC members' comments, which could dampen the pace of rate hikes.

Summary May's downshift in hiring to its slowest pace in more than a year still leaves payrolls rising at a robust pace. Employers topped consensus expectations with 390K new jobs. The ongoing solid pace of hiring has been fueled not only by sky-high demand but by more workers returning to the labor force. The labor force participation rate rebounded a tick in May, helping to keep the unemployment rate steady at 3.6% and wages from accelerating further. Today's report lands in a sweet spot for the Fed. While the labor market remains clearly tight and is adding to inflationary pressures, improving labor supply is helping ease the upward pressure on wages while still allowing more workers to gain employment. But there is a long way to go before restoring the balance to the jobs market that will be needed for the Fed to win the battle on inflation, keeping the FOMC on track to tighten monetary policy aggressively at its next few meetings. Job growth mostly broad-based Nonfarm payrolls rose by 390K in May, down slightly from April's 436K pace. The ongoing employment recovery in leisure & hospitality continued with 84K net new jobs added in the month, led by restaurants & bars (+46K) and accommodation firms (+21K). Professional & business services and transportation & warehousing once again posted strong monthly gains of 75K and 47K, respectively. Manufacturing and construction employment also saw solid increases despite other recent data showing some tentative signs of cooling in these sectors. The retail sector was one of the lone disappointments. Retail employment declined 61K in May, which is consistent with weak earnings from some of the nation's largest retailers. We expect households to keep steadily shifting their consumption away from goods and toward services, and it would not surprise us if these shifting spending patterns are reflected in the employment reports over the next several months. In total, nonfarm employment is down by 822K, or 0.5%, from its pre-pandemic level. Three major sectors account for these missing jobs: leisure & hospitality (down 1.3M from February 2020), health care (down 223K) and state and local government (down 634K). Encouragingly, all three of these sectors saw solid job growth in May, including a 52K employment increase for state and local governments, the largest increase since June 2021. Download The Full Economic Indicator

As the Biden administration scrambles to try to contain inflation – or at least make a public relations show of it – precious metals investors are wondering how much longer gold and silver prices will remain contained. Metals markets got a bit of a lift this week through Thursday but have pulled back a bit here today. As of this Friday recording, gold is flat for the week now to trade at $1,860 per ounce. And silver is down 20 cents or 0.9% this week to trade at $22.12 an ounce.    Turning to the platinum group metals, platinum is this week’s standout performer with a robust 7.7% advance to come in at $1,039. And finally, palladium prices are down 1.9% to trade at $2,039 per ounce. While precious metals are showing some signs of emerging strength here, they remain depressed compared to other raw materials. Gasoline prices, for example, are setting record after record across the country. On Thursday, the national average hit $4.72 a gallon. In California, it’s now over $6.00. Consumers who are frustrated with skyrocketing costs for fuel, food, and other essentials are giving President Joe Biden poor marks for his handling of the economy. The White House is desperately trying to revive Biden’s tanking poll numbers ahead of the mid-term elections. And to do that, the President needs to appear to be tackling the inflation problem. On Tuesday, Biden convened a rare one-on-one meeting with the chairman of the Federal Reserve. Biden insisted he respects the Fed’s so-called independence.  But he was clearly leaning on Chairman Jerome Powell to do more to combat rising prices. Powell is in a tough spot. He oversaw a massive central bank stimulus intervention to help accommodate the Biden administration’s spending agenda. Now he’s being asked to withdraw some of that stimulus without crashing financial markets in the process. The administration now acts surprised that all the spending and borrowing it pushed forward helped create an inflation problem. Last year while Treasury Secretary Janet Yellen was promoting Biden’s “Build Back Better” agenda, she testified before Congress that the trillions in new spending wouldn’t contribute to inflation. Now she is being forced by inflation realities to backtrack. Yellen went on CNN this week and admitted that she got it wrong – very wrong. Financial Market Commentator:    (While) President Biden passes the buck on inflation, Secretary Yellen, issues a mea culpa. Treasury Secretary Janet Yellen: I was wrong then about, umm, the path that inflation, umm, would take. As I mentioned, there have been unanticipated and large shocks to the economy that have boosted energy and food prices. And, umm, supply bottlenecks that have affected our economy badly, that I didn't, at the time, didn't fully understand. Perhaps Yellen should have listened to former Treasury Secretary Larry Summers. A Democrat who served under Bill Clinton, Summers panned the Build Back Better agenda and warned that excessive fiscal stimulus would create the very inflation problem that we are now seeing play out. Of course, nobody has a crystal ball when it comes to the economy and markets. While some trends are largely predictable, others aren’t. Black swan events such as pandemics, wars, terrorist attacks, and flash crashes can devastate an investment portfolio that is highly concentrated in a particular asset class. That’s why broad diversification is key to navigating uncertain times. If there is one investment theme that is close to 100% certain to play out, it is that the U.S. dollars in which all investments are denominated will continue to depreciate. It is the nature of fiat currency regimes that they produce inflation. That is their very purpose.  Politicians and central bankers don’t want to be constrained by the strict limitations imposed by a hard money system. That is why they sneer at the suggestion that gold and silver could still function as money in a modern economy. Gold is antiquated, they say. But in reality, the fiat monetary regime is based on obsolete ideas that should have been relegated to the dustbin of history after the fall of the Soviet Union. The central planning mindset holds that purported experts need to be put in positions of power to do things like fix interest rates and intervene whenever markets or the economy get off track. But as we’ve seen, the central planners at the Treasury Department and Federal Reserve can’t even accurately predict the outcomes of their own actions. Public confidence in government and the Federal Reserve is plummeting when it comes to their handling of the economy. That is one reason why demand for physical precious metals is growing. The U.S. Mint continues to struggle to keep up with buying volumes for its American Eagle gold and silver coins.  Last month, the Mint sold 147,000 ounces of gold Eagles. That...

Euro area inflation once again exceeded expectations in May, sparking further speculation of faster ECB rate hikes. With core inflation rising to 3.8% y/y and seasonally adjusted m/m rate still around 0.5%, we now expect core inflation to peak only after the summer. Consequently, we have lifted our expectations for ECB rate hikes ahead of next Thursday’s meeting, and now look for 25bp hikes in every meeting from July to March (which would bring the deposit rate to 1.00%). Next week’s meeting will likely mark the formal end to ECB’s net asset purchases, and the focus will be on the possibility of 50bp rate hikes in the coming meetings, as markets are pricing in around 30% risk of such a hike in July. Read our full ECB Preview - Ready for lift-off, 2 June. Today, we published Big Picture: A (mild) recession in western economies seems unavoidable, 3 June, with our latest economic forecasts. We now expect US economy to fall into a mild recession during H1 2023, with euro area following suit in H2 2023. The combination of weakening real purchasing power and tighter financial conditions will weigh on economic growth, even though pent-up demand, savings and the re-opening of economies will continue to support activity especially in the service sector in the near-term. Chinese growth will likely recover towards 2023 on the back of renewed stimulus, but with the latest lockdowns and no signs of easing the ‘zero-covid’ strategy for now, we have downgraded our growth forecast for 2022. As global demand outlook weakens towards 2023, we also expect the current inflation pressures to ease. That being said, we still expect euro area and US core inflation to remain above central banks’ target levels even in 2023, supporting the case for further rate hikes. OPEC+ failed to stabilise rising oil prices after EU announced the embargo on Russian oil. OPEC+ agreed to hike production by 648 thousand barrels per day (bpd) in July and August, above the initial plan of 432 bpd, but it did not yet address Russia’s status within the group. While the larger production increases ease the supply situation in the near-term, they also mean less potential production capacity in the future, leaving the oil market vulnerable to new supply shocks. We expect prices to remain elevated in the coming months, and maintain our forecast for Brent at USD115/bbl towards Q3. In China, Shanghai was able to end its two-month long lockdown this week. PMIs rebounded in May, and the recovering Chinese demand outlook is another factor supporting commodity prices. New stimulus was also announced this week, as policy banks are funding increasing number of infrastructure projects for the central government. Next week, focus remains on the Covid-situation, while the trade data released on Thursday will likely remain weak due to the disruptions caused by the pandemic. In terms of economic data, next week’s highlight will be the US CPI on Friday. We expect the figures to continue illustrating strong and broad-based price pressures. Aside from the ECB, we expect the Reserve Bank of Australia (RBA) to continue its hiking cycle with another 25bp hike, but following recent 50bp hikes by the Fed, Bank of Canada and the RBNZ, risks are tilted towards a larger hike also in Australia. Download The Full Weekly Focus

Summary United States: Economic Storm Clouds or Just a Brisk Inflationary Headwind? Nonfarm payroll growth exceeded expectations in May, with employers adding 390,000 jobs. The unemployment rate was unchanged at 3.6%, but labor force growth edged higher and wages rose only modestly. Most of this week's other reports also came in above expectations, with the ISM manufacturing index rising 0.7 points to 56.1 and factory orders posting solid, broad-based gains. Next week: Trade Balance (Tues), CPI (Fri), U. of Mich. Sentiment (Fri) International: Hawkish Hike from the Bank of Canada, Mixed Data in the Emerging Markets The Bank of Canada delivered a 50 bps policy rate hike to 1.50%, and the accompanying statement was more hawkish than market participants expected. In emerging markets, data from China this week suggest the worst may be behind, as May PMI data revealed a modest uptick in sentiment. While China's economy is showing tentative signs of stabilization, Brazil is showing signs that activity is decelerating. Next week: European Central Bank (Thurs), Mexico Inflation (Thurs), Brazil Inflation (Thurs) Credit Market Insights: Federal Student Loans Brought to the Forefront Again On Wednesday, the Federal Department of Education announced that it will discharge $5.8B in federal student loans. These targeted actions do not broadly effect American balance sheets or the macroeconomy—$5.8B in federal student loans is a small fraction of the $1.6T in total student loan debt. Topic of the Week: The Growing Economic Influence of the LGBTQ+ Community Organized protests like the "Stonewall Uprising" have brought attention to the countless injustices that have been, and continue to be, inflicted on individuals identifying as LGBTQ+. The events that transpired 53 years ago were a pivotal moment in the long fight for equal rights. To commemorate Pride Month in 2022, we explore the growing economic influence of the LGBTQ+ community. Download the full report here

EUR/USD from yesterday's  long 1.0642 to target 1.0795. EUR/USD achieved highs so far at 1.0764 or +122 pips. EUR/USD for NFP could easily trade to 1.0801 and 1.0807 then short to target 1.0752 and break targets 1.0720's. Once EUR/USD achieves it highs then short for the day is the way to trade. EUR/USD close today could easily achieve 1.0720's and not a good location for next week's longs or shorts as next week would begin at fairly dead neutral. Same story as last week when EUR/USD opened at 1.0734. EUR/USD overall support is derived from  deeply oversold EUR/CHF, EUR/CAD and EUR/AUD yet overbought to EUR/JPY and EUR/GBP. EUR/USD big break for higher is now located at 1.0830 and a continued rise to all averages. Break higher from 1.0830 targets easily 1.0933 then 1.0984. The EUR/USD long side prevails next week. USD/JPY rose from 114.00's to 131.00's. At current 129.00's and 130.00's, USD/JPY trades at the top of the range and deeply overbought short, medium and long term. USD/JPY should trade today to easily 129.28. GBP/JPY overall range is located from, 148.00's to 168.00's. At 163.00's, GBP/JPY trade near its range top. Good target today is 162.85 from short 163.87. NZD/USD's big break is found at 0.6593 and targets today 0.6587 and 0.6590. Good short opportunity to target 0.6535. JPY cross pairs contain a long way to go on the downside and from the big 3 as GBP/JPY, EUR/JPY and CAD/JPY. GBP/USD for NFP targets 1.2625 while EUR/CAD and GBP/CAD offer good lomgs heading into next week. DXY is again located at solid supports at 100 and 101. For SPX today, targets 4202 on the up side and 4048 below. Next Week's markets will trade the exact same as this week: fairly neutral wuthout dramatic moves. 

EUR/USD from yesterday's  long 1.0642 to target 1.0795. EUR/USD achieved highs so far at 1.0764 or +122 pips. EUR/USD for NFP could easily trade to 1.0801 and 1.0807 then short to target 1.0752 and break targets 1.0720's. Once EUR/USD achieves it highs then short for the day is the way to trade. EUR/USD close today could easily achieve 1.0720's and not a good location for next week's longs or shorts as next week would begin at fairly dead neutral. Same story as last week when EUR/USD opened at 1.0734. EUR/USD overall support is derived from  deeply oversold EUR/CHF, EUR/CAD and EUR/AUD yet overbought to EUR/JPY and EUR/GBP. EUR/USD big break for higher is now located at 1.0830 and a continued rise to all averages. Break higher from 1.0830 targets easily 1.0933 then 1.0984. The EUR/USD long side prevails next week. USD/JPY rose from 114.00's to 131.00's. At current 129.00's and 130.00's, USD/JPY trades at the top of the range and deeply overbought short, medium and long term. USD/JPY should trade today to easily 129.28. GBP/JPY overall range is located from, 148.00's to 168.00's. At 163.00's, GBP/JPY trade near its range top. Good target today is 162.85 from short 163.87. NZD/USD's big break is found at 0.6593 and targets today 0.6587 and 0.6590. Good short opportunity to target 0.6535. JPY cross pairs contain a long way to go on the downside and from the big 3 as GBP/JPY, EUR/JPY and CAD/JPY. GBP/USD for NFP targets 1.2625 while EUR/CAD and GBP/CAD offer good lomgs heading into next week. DXY is again located at solid supports at 100 and 101. For SPX today, targets 4202 on the up side and 4048 below. Next Week's markets will trade the exact same as this week: fairly neutral wuthout dramatic moves. 

The European Central Bank is set to flag its first rate hike in more than a decade this week, while the Reserve Bank of Australia might step on the brakes harder. But as the laggards of the central bank world finally get their stakes on when it comes to tightening policy, investors will be on the lookout for more evidence that inflation may already be peaking in the United States. China’s economy will be in the spotlight too as trade and inflation readings are due as growth fears persist even after the easing of Shanghai’s lockdown.

The US reported better than expected job gains but slower monthly wage increases in May.  Signs of growing labor supply and falling pay may ease the path of Fed rate hikes.  The dollar may swing back down when the dust settles. Two months of weaker than expected wage increases in a row – is the most important thing for the Federal Reserve, which is fighting inflation. The rest is less important. The US gained 390,000 jobs in May, better than 328,000 expected, but on top of downward revisions. Real expectations stood at lower levels after the ADP data, and that helps explain the stronger dollar reaction.  However, Average Hourly Earnings advanced by only 0.3% in May, worse than the 0.4% projected and after another weak increase in April. Slower increases in salaries mean lower price pressures on inflation that the Federal Reserve can influence – the demand side. It cannot impact global and energy prices.  Moreover, yearly wage growth has slowed to 5.2% from 5.5$. While that fully met economists' expectations, it still reflects a deceleration. If peak inflation is in sight – or even in the rearview mirror – the Fed may halt its cycle of rate hikes, and weaken the dollar. Once prices pressures ease, the Fed could loosen its pedal from the metal. At the peak of inflation, a mountain is peeking through the clouds, but it might come out to full sight sooner rather than later. Therefore, I think the knee-jerk reaction in the dollar is unjustified, and it could see suffer substantial losses. The next big text is the Consumer Price Index (CPI) report coming out next Friday. If Core CPI misses estimates, that would provide more proof – revealing another part of the peak in the inflation mountain – and sending the dollar down. 

Gold Price retreated ahead of the weekend amid renewed dollar strength. 10-year US Treasury bond yield closes in on 3% after upbeat US jobs report. Next week's ECB meeting and US inflation report could ramp up XAUUSD volatility.  Gold Price erased a portion of its weekly gains on Friday as US Treasury bond yields gained traction on the better-than-expected labor market data. XAUUSD remains on track to close the third straight week higher but the recent price action suggests that the pair could find it difficult to make a decisive move in either direction unless it breaks out of the $1,840-$1875 range. US yields push higher after US data  The monthly data published by the US Bureau of Labor Statistics revealed on Friday that Nonfarm Payrolls in the US rose by 390,000 in May. This reading surpassed the market forecast of 325,000. Additionally, April's print of 428,000 got revised higher to 436,000. Further details of the report showed that the Labor Force Participation Rate improved to 62.3% as expected and the annual wage inflation edged lower to 5.2%, matching analysts' estimates. The benchmark 10-year US Treasury bond yield pushed higher toward 3% with the initial reaction to the upbeat jobs report and caused XAUUSD to turn south following the two-day rally. Also read: Gold Price Forecast: Is the uptrend expected to continue? Gold Price eyes ECB meeting, US CPI as next catalysts In an interview with CNBC on Thursday, Lael Brainard, Vice Chairwoman of the US Federal Reserve, noted that it was very hard for her to see the case for a pause in rate hikes in September. “We’re certainly going to do what is necessary to bring inflation back down,” Brainard further added and said that the US economy still has a lot of momentum. These hawkish remarks failed to trigger a leg higher in the US Treasury bond yields and allowed gold to continue to trade in the upper half of its weekly range on Thursday.  Next week, the European Central Bank (ECB) will announce its rate decision and release the monetary policy statement. The ECB is widely expected to hike its policy rate by 25 basis points (bps) in July. Several ECB policymakers said in the past couple of weeks that the bank might need to start considering 50 bps rate hikes to tame inflation. Signs of loss of growth momentum in the European economy, however, puts the central bank in a tough position. In case the ECB reveals a hawkish rate outlook, XAUEUR could come under heavy bearish pressure and cause XAUUSD to edge lower as well. Nevertheless, the dollar’s market valuation would also be impacted in a negative way in that scenario and help gold limit its losses. ECB President Christine Lagarde Next Friday, the BLS will release the May inflation data. On a yearly basis, the Consumer Price Index (CPI) is forecast to edge lower to 8.2% from 8.3% in April. The market reaction to the inflation data should be pretty straightforward with a lower than expected CPI print weighing on US T-bond yields and providing a boost to XAUUSD and vice versa. Gold Price technical outlook Gold Price seems to have gone into a consolidation phase with the Relative Strength Index (RSI) indicator on the daily chart moving sideways near 50. Although XAUUSD was able to close above the 200-day SMA for two straight days, the Fibonacci 38.2% retracement of the latest downtrend seems to have formed stiff resistance at $1,875. With a daily close above that level, gold could target the $1,890/$1,900 area (100-day SMA, 50-day SMA, Fibonacci 50% retracement) and $1,915 (Fibonacci 61.8% retracement) afterwards. On the downside, $1,850 (Fibonacci 23.6% retracement) aligns as interim support before $1,840 (200-day SMA). In case the latter turns into resistance, this could be seen as a significant bearish development and attract sellers. In that scenario, additional losses toward $1,830 (June 1 low) could be witnessed. In short, gold needs to break out of the $1,875-$1,840 range in order to determine its next short-term direction. Gold Price Report: Commodity Supercycle

EUR/USD: Europe’s single currency staged an impressive rebound against its US counterpart on Thursday. US equities also rose, with the US Dollar Index (USDX) exploring lower territory, consequently underpinning the EUR/USD (0.9 per cent). Technically, we’re at an interesting juncture on the higher timeframes. In a market decisively trending lower since 2021, weekly Quasimodo support-turned resistance at $1.0778 is being tested. Though on the other side of the fence, price action on the daily timeframe rebounded from support at $1.0638. This places light on an ascending support-turned resistance, drawn from the low $1.0340. Also of particular relevance on the daily chart is the relative strength index (RSI) retesting (and holding) its 50.00 centreline, echoing the possibility of support. Out of the lower timeframes, H4 price rebounded from supply-turned demand from $1.0655-1.0632, alongside the H1 timeframe rebounded from a bullish AB=CD formation which dovetailed with a Quasimodo resistance-turned support at $1.0631 as well as a number of nearby Fibonacci ratios. Overhead, H4 resistance is at $1.0758 and H1 resistance can be seen at $1.0762. With weekly resistance ($1.0778) active, as well as the trend clearly favouring lower prices, and H1/H4 price nearing resistance at $1.0762-1.0758, a bearish scene could unfold from the noted lower timeframe resistances in upcoming sessions. AUD/USD: Upbeat risk sentiment and limited USD demand boosted appeal for the Australian dollar on Thursday. AUD/USD ended the session 1.3 per cent higher, on track to record a third consecutive weekly advance. Daily Quasimodo support-turned resistance at $0.7245 welcomed price action, a level benefitting from the 200-day simple moving average at $0.7256 (dynamic resistance). Upstream calls attention towards Fibonacci resistance between $0.7364 and $0.7322. Of note on the daily scale, of course, is the relative strength index (RSI) cementing position north of its 50.00 centreline (positive momentum). For those who read recent technical writing you may recall the following, covering weekly structure: Recent weeks observed AUD/USD establish a lower low (breaching 28th Jan $0.6968 low) and subsequently fashion a 2-week recovery (3.2 per cent). While an extended pullback is on the table, this remains a sellers’ market in observance of a clear downtrend since August 2011 (check monthly scale) and weekly flow topping out at $0.8007 in early February 2021. Weekly support structure remains seen between $0.6632 and $0.6764, comprised a 100% Fibonacci projection, a price support, and a 50% retracement. Lower on the curve, H4 price is finding some grip above resistance at $0.7246 (now possible support), with subsequent interest to the upside shining light on H4 channel resistance, drawn from the high $0.7041, followed by H4 resistance at $0.7349. Lower, demand is seen from $0.7147-0.7204. On the H1, upside has 5th May $0.7266 as resistance after running above $0.72. With daily resistance active at $0.7245 in addition to the 200-day simple moving average, together with H1 price closing in on $0.7266, H4 sellers could make a show from channel resistance, extended from the high $0.7041. USD/JPY: Upside momentum slowed on Thursday and ended the session largely muted. This follows back-to-back dominant days for the USD/JPY. With that, here’s where we left the higher timeframes in recent studies: Leaving weekly support from ¥125.54 unopposed, USD/JPY trades 2.4 per cent higher on the week and threatens to refresh multi-year pinnacles. We also clearly remain entrenched within a primary bull trend, though daily price is now on the doorstep of reconnecting with supply at ¥131.93-131.10. Aiding the bullish picture is the daily timeframe’s relative strength index (RSI) strongly rebounding from 40.00-50.00 support (an area representing an oversold zone since May 2021). Coming from the H4 timeframe, price is retesting a Quasimodo resistance-turned support at ¥129.67. Respecting the aforesaid level unlocks the path to H4 Quasimodo resistance at ¥130.58. In conjunction with the H4 base, H1 crossed swords with demand at ¥129.21-129.55, though remains south of ¥130, as of writing. Overall, this remains a buyers’ market, with short-term flow likely to pull north of ¥130 and target H4 Quasimodo resistance at ¥130.58. GBP/USD: Fibonacci support between $1.2451 and $1.2471 served short-term flow well on Thursday, permitting H1 players to clear $1.25 in early Europe amid improved risk appetite. Subsequent price movement dethroned H1 resistance at $1.2554, echoing possible support in upcoming trade and drew light towards $1.26. Nestled above the noted psychological level is H4 resistance between $1.2686 and $1.2614, made up of a number of technical resistances. Meanwhile on the bigger picture, this market has been entrenched within a strong primary downtrend since early 2021, emphasising weekly resistance at $1.2719 and daily Quasimodo support-turned resistance at $1.2762 as a possible ceiling. Interestingly, the daily timeframe’s relative strength index (RSI) is attempting to find acceptance above the 50.00 centreline: positive momentum. As a result of current analysis, higher timeframe resistance resides between $1.2762 and $1.2719. Though on the lower timeframes, a whipsaw above...

EUR/USD - 1.0646 Euro's selloff from Monday's 1-month 1.0786 high to 1.0680 Tuesday and yesterday's break there to as low as 1.0628 in New York on rally in usd in tandem with US yields suggests correction from May's 5-year trough of 1.0350 has made a temporary top there and further weakness towards 1.0608 would be seen but oversold condition should keep price above 1.0568 and yield rebound. On the upside, only a daily close above 1.0680 would indicate pullback over and risk stronger gain towards 1.0706 before down. Data to be released on Thursday New Zealand import prices, export prices, Australia trade balance, imports, exports. Swiss CPI, U.K. Market Holiday, Italy Market Holiday, EU producer prices. Canada building permits, U.S. initial jobless claims, continuing jobless claims, labor costs, productivity, durables ex-defense, durables goods, durable ex-transport and factory orders.