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.
NZDUSD intra-day analysis
NZDUSD (0.7363): The New Zealand dollar remains firmly supported above the 0.7333 level with the declines off the recent highs being only gradual. However, we expect that in the near term, NZDUSD could be seen pushing lower to test the support level at 0.7333 region. A rebound off this level could keep the bias positioned to the upside with further gains likely on a close above the previously established highs of 0.7430. To the downside, in the event that the support at 0.7333 fails, we can expect further declines to push the currency pair lower to the support level at 0.7160.