Daily Forex Market Preview, 16/03/2018
The U.S. dollar was seen posting some modest gains yesterday with investors positioning themselves ahead of the FOMC meeting next week. Expectations of an interest rate hike stands close to 90% for next week’s Fed meeting.
On the economic front, the Swiss National Bank held its monetary policy meeting yesterday. The central bank maintained the three-month LIBOR rate at -0.75% and did not offer any new signals for the market as far as the Swiss monetary policy was concerned. The Norges Bank also held its meeting yesterday with interest rates left unchanged. However, the Norwegian central bank signaled that interest rates could rise by September this year.
Looking ahead, the Eurozone final inflation estimates will be coming out later today. Economists’ forecasts point to subdued pace of increase in consumer prices. In the U.S. the building permits and housing starts data will be coming out followed by the industrial production figures.
EURUSD 16-03-2018 Intra-day analysis
EURUSD (1.2310): The EURUSD was bearish yesterday with price action extending the declines for the second day. However, the declines pushed the common currency back below the 1.2333 level of support. The sideways range is expected to continue into next week’s FOMC meeting. Uncertainty surrounding Trump’s policies on trade along with the changes in Washington continue to keep the U.S. dollar subdued. The EURUSD is expected to be trading near the 1.2333 level with the declines like to stall near the previously established lower support at 1.2179.