Daily Forex Market Preview, 30/01/2018
The U.S. dollar nudged higher on Monday as the core PCE data released yesterday showed a 0.2% increase on the month matching estimates and rising from 0.1% previously. On a year over year basis, the core PCE price index rose 1.5%, unchanged from the previous month. Personal income and spending data was also positive rising 0.4%.
Ahead of the Fed’s meeting on Wednesday, the U.S. dollar could be seen rising with the Fed expected to stay hawkish on rates. Elsewhere, the retail sales data from Japan showed a 3.6% increase beating expectations of 2.1%.
Looking ahead the preliminary GDP data from the Eurozone for the fourth quarter of 2017 will be released today. Expectations show a 0.6% increase in GDP on the quarter. Later in the day, BoE Governor Carney will be speaking in the UK parliament.
EURUSD intra-day analysis
EURUSD (1.2379): The EURUSD was seen trading weaker on Monday but price action continues to remain near the highs. On the 4-hour chart, price action is seen consolidating within the bullish flag pattern. A break out above 1.2400 is required for the common currency to target the previous highs at 1.2497. This could extend the gains further towards 1.2659. To the downside, a break down below 1.2336 could signal a correction and invalidate the bullish flag pattern. The 4-hour Stochastics is currently oversold and rising and could indicate a near term move to the upside.