Daily Forex Market Preview, 13/02/2018
The U.S. dollar was seen trading rather flat on Monday. Lack of economic data and a modest recovery in the equity markets saw most of the currencies trading in a range. Earlier today, BJ Governor Kuroda said that the central bank must maintain its QE program as it takes time for inflation to reach the BoJ’s 2% inflation target rate. Kuroda was addressing the Lower House Budget Committee.
Looking ahead, the economic data today will focus on the annual CPI data from the UK and will cover the period of January. Economists forecast that headline CPI in the UK rose 2.9% on the year. This marks a slower pace of increase in inflation for the second month. Core CPI is however expected to rise 2.6% on the year.
In the U.S. trading session, FOMC member Loretta Mester will be speaking while later in the evening, Japan will be releasing its preliminary GDP data. Economists forecast that GDP advanced 0.2% on the quarter, down from 0.6% previously.
EURUSD intra-day analysis
EURUSD (1.2297): The EURUSD was seen retracing its declines following Friday’s doji pattern. The rebound to the upside could see a follow through in the short term with the potential lower high being formed on the current retracement. Resistance is seen near 1.2333 – 1.2363 level which could see price posting a reversal. This could potentially pave way for further declines to the initial support level at 1.2090 – 1.2070. Alternately, in the event that EURUSD breaks above 1.2363, we could anticipate further room to the rally above the resistance level.