Daily Forex Market Preview, 16/02/2018
The USD was seen trading weaker across the board on Thursday. The biggest gains came from the Japanese yen which surged 0.82% on the day.
Economic data from the U.S. was mixed. Producer price index data from the U.S. showed a 0.4% increase matching estimates and rising to an annual pace of 2.7%. Industrial production figures showed a 0.1% decline in January with previous month’s data being revised lower as well.
The capacity utilization rate slipped to 77.5%. The regional manufacturing index data showed that the Philly Fed manufacturing index rose to 25.8 beating estimates while the NY Fed manufacturing index eased from 17.7 in the previous month to 13.1 in February.
Looking ahead, the retail sales data from the UK is expected to show a 0.5% increase after falling 1.5% the month before. The data comes amid UK households facing faster inflation and slower wage growth. Data from the U.S. today will see the housing starts and building permits data coming out.
EURUSD intra-day analysis
EURUSD (1.2541): The EURUSD maintained the gains yesterday as price rallied to a fresh 3 year higher earlier today. The gains in the euro came as the U.S. dollar failed to hold on the gains giving a lift to the common currency. With the strong gains, any downside correction could be limited to the 1.2365 level which previously served as resistance. A retest of support at this level could signal a potential rebound with the upside bias intact.