Daily Forex Market Preview, 19/02/2018
The U.S. dollar posted a rebound on Friday after briefly slipping sending most of the other major currencies to post fresh highs. However, the declines were short lived as the dollar managed to reverse the levels. The FOMC meeting minutes will be released on Wednesday and the markets are anticipating that the Fed could hike rates as early as March.
On the economic front, data from the UK showed that retail sales rose only 0.1% on the month missing estimates of a 0.5% increase. The previous month’s data was revised slightly higher to show a 1.4% decline. Data on Friday was mostly dominated by the U.S. housing data. Building permits, housing starts posted modest gains while the import prices rose 1.0% on the month.
Looking ahead, the economic data is light with the U.S. markets closed due to a bank holiday. Eurozone current account data is due during the day while the Bank of England Governor Mark Carney will be speaking later in the evening.
New Zealand will be reporting its PPI numbers towards the close.
GBPUSD 19-02-2018 Intra-day analysis
GBPUSD (1.4023): The British pound was seen easing back on Friday as price touched the previous support level of 1.4121 to establish resistance. The reversal at this level on the daily time frame indicates a pull back. We expect price to slip back to 1.3902 in the near term. There is a chance that GBPUSD could remain range bound within the current levels. But, if price action fails to hold the declines near the support of 1.3902 watch for prices to correct towards 1.3611 – 1.3600 region where the support is likely to be tested.