Daily Forex Market Preview, 08/03/2018
The Bank of Canada held its monetary policy meeting yesterday as it left interest rates unchanged as widely expected. In the U.S. the markets were on the back foot following the announcement that President Trump’s chief economic advisor Gary Cohn resigned.
Looking ahead, the ECB’s monetary policy meeting will be the main event that stands out today. The market expectations are mixed with the ECB expected to maintain the interest rates and the asset purchases steady. However, forward guidance could be the key factor with the markets divided on whether the ECB will be hawkish or dovish.
The Bank of Canada Governor, Stephen Poloz will also be speaking later today. The speech comes after the BoC voted to keep interest rates steady at yesterday’s meeting. On the economic front, German factory orders and the weekly unemployment claims from the U.S. will be released today.
EURUSD 08-03-2018 Intra-day analysis
EURUSD (1.2406): The EURUSD was seen closing rather flat on the day following nearly four consecutive days of gains. With price action perched above 1.2363 level which previously served as resistance, any pullbacks are likely to extend to this level in the near term. The ECB’s meeting today will serve as the main catalyst for EURUSD. A break down below 1.2363 – 1.2333 region could signal the downside bias in price. EURUSD is likely to extend lower targeting 1.2090 – 1.2070 level of support eventually.