Daily Forex Market Preview, 20/02/2018
The U.S. dollar managed to hold on to the gains made from Friday as the U.S. markets were closed on Monday. Trading was broadly limited ahead of Wednesday’s FOMC meeting. With the USD posting some gains, most other major currencies were seen easing back, albeit only slightly.
The Bank of England Governor, Mark Carney was speaking at an event yesterday, but he did not touch upon the monetary policy of the central bank.
Looking ahead, the economic calendar today will see the release of the German producer price index. Economists forecast that producer prices might have increased 0.3% on the month. The ZEW economic sentiment for Germany and the Eurozone will be coming out later. Both measures are expected to show moderation following the previous month’s increase. Data from the U.S. is scarce with the NY trading session limited to the Eurozone consumer confidence data.
GBPUSD intra-day analysis
GBPUSD (1.3978): The British pound was seen posting declines after last Friday’s retest to 1.4121. The declines could be seen extending towards 1.3902 level in the near term. On the 4-hour chart, the lower high being formed near the resistance suggests that the downside momentum could push GBPUSD towards the mentioned lower support. Any short term bounce to the upside could be limited to the previous minor resistance level of 1.4035. A close above this level could suggest price moving back to retest the major resistance area of 1.4182 – 1.4127.