By Orbex Blog
Daily Forex Market Preview, 18/04/2018
The U.S. dollar was seen trading on firmer ground yesterday amid a busy trading day. Investor appetite was seen improving across the board.
Economic data from the UK showed that the unemployment rate fell to 4.2%, which was better than the expected 4.3% level. Wage growth was however subdued, rising 2.8% on the month. This was below forecasts of 3.0% increase from the previous month.
Data from the United States showed that building permits increased 1.35million which was higher than the previous month’s 1.32 million.
Looking ahead, the economic calendar today will see the release of the UK’s inflation data. Economists forecast that inflation will rise at the pace of 2.7%, the same pace of increase as the month before. Core CPI is expected to slightly accelerate 2.5% on the year ending March.
Free Reports:
The Bank of Canada will be holding its monetary policy meeting today. Interest rates are expected to remain unchanged at 1.25% on the month. The central bank is expected to however strike a hawkish tone. Later in the day FOMC members, Quarles and Dudley are expected to speak.
New Zealand quarterly inflation data will be coming out later in the evening. Economists forecast that quarterly inflation increased 0.5% during the first quarter. This marks a slight increase from 0.1% seen in the previous quarter.
EURUSD intra-day analysis
EURUSD (1.2378): The EURUSD was bearish yesterday as the currency pair failed to breakout above the resistance level established at 1.2400. Price action was seen testing intraday highs of 1.2411 before giving up the gains. The declines were however met with another reversal with the common currency now attempting to retest the resistance level once again. Unless the EURUSD posts a breakout above 1.2385, we expect to see price action trading below the resistance level and continuing to maintain the sideways range.
GBPUSD intra-day analysis
GBPUSD (1.4303): The British pound maintained strong gains on the day with the currency pair testing fresh highs of 1.4377. The 4-hour chart shows the Stochastics oscillator building up the momentum, which could signal further gains in the near term. However, unless the previous high is breached, we expect to see price action likely to correct back to the 1.4232 level of support in the near term.
XAUUSD intra-day analysis
XAUUSD (1344.71): Gold prices continued to trade sideways with the daily price action closing with a doji pattern. As long as prices remain supported above the 1336 handle, we expect to see this ranging pattern continue for the near term. The rising trend line is expected to hold any declines to the downside but a breakdown below the trend line could see gold prices extending the losses to test the lower support at 1325 level.