Daily Forex Market Preview, 19/10/2018
Economic data on Thursday was relatively quiet. The U.S. dollar attempted to maintain some gains but was flat on the day. Gold prices advanced strongly on Thursday recovering the losses from the day before.
The UK’s retail sales report showed a larger than expected declines. Retail spending fell 0.8% on the month which was more than the forecasts of a 0.4% decline. However, data for the previous month was revised higher to show a 0.4% increase.
China released its quarterly GDP report earlier in the day. Data showed that GDP advanced 6.5% in the third quarter of the year. This was slightly below the forecasts of a 6.6% increase and slower than the 6.7% increase seen in the second quarter.
The economic calendar is somewhat light during the European trading session. However, the NY trading session will see the release of Canada’s inflation data and retail sales.
Headline CPI is forecast to remain flat. Retail sales are expected to rise 0.3% on the month while core retail sales are expected to rise just 0.1% after rising 0.9% in the month before.
Data from the U.S. will see the release of the existing home sales report. The BoE Governor Carney is scheduled to speak later during the evening.
EURUSD intraday analysis
EURUSD (1.1459): The euro continued to extend the declines. Price action was seen trading near the lower support at 1.1435 – 1.1462 level. We expect to see some consolidation taking place at this level. As long as this support holds, the common currency could be seen trading within a range. In the event that the EURUSD breaks below this support, we expect a retest of 1.1400.
GBPUSD intraday analysis
GBPUSD (1.3022): The British pound extended declines sharply yesterday as price action fell to test the lower support at 1.3054 – 1.3028. If the support fails to hold the declines, we anticipate further falls in GBPUSD to push price lower to 1.2808. To the upside, the GBPUSD could be seen attempting to bounce off the current support level. The gains could be limited to 1.3132 level where resistance could be established.
XAUUSD intraday analysis
XAUUSD (1227.54): Gold prices turned higher towards the closing session on Thursday as price action was seen attempting to recover most of the losses from the previous day. Following the rally to 1225.35, gold prices are somewhat trading in a range. To the upside, the next main resistance is seen at 1238.00 – 1242.25 level. We expect the momentum to keep the prices biased to the upside for a retest of this level as resistance which previously served as support.
