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.
USDJPY intra-day analysis
USDJPY (108.67): The USDJPY managed to turn bullish on the day but price edged back lower in the early Asian trading session. USDJPY remains supported above the main daily support level at 108.26. On the 4-hour chart, the current retracement back to the support zone at 108.64 – 108.26 indicates a potential higher low being formed. As long as USDJPY posts a reversal at this level, we expect to see further upside gains coming. The resistance level at 110.34 forms the near term target.