Daily Forex Market Preview, 19/03/2018
The markets get off to a slow start ahead of what could be an eventful week with the FOMC meeting due on Wednesday. The U.S. dollar was seen edging higher on Friday but only posted modest gains as investors brace for the Fed meeting this week.
On the economic front, data from the U.S. was somewhat mixed. Housing starts were seen rising at a slower pace of just 1.24 million compared to 1.33 million the month before. Building permits were somewhat better, rising 1.30 million. Industrial production figures released on Friday surged 1.1% beating estimates of 0.3% and reversing the revised 0.3% declines from the month before.
Data from the Eurozone showed that headline consumer prices rose only 1.1% missing estimates of 1.2% increase.
Looking ahead, Italy’s industrial production and trade balance figures are coming up today amid a quiet trading day. The G-20 meetings are due. Other major factors coming up include the Brexit talks due on 22 March where Britain is hoping to clinch a transitory deal.
EURUSD 19-03-2018 Intra-day analysis
EURUSD (1.2266): The EURUSD was seen posting modest declines on Friday led by weaker than expected consumer prices. With the recent ECB speech from Draghi at the ECB Watchers conference, the central bank is expected to maintain a slow and steady pace when it comes to tapering. The ranging price action in EURUSD continues to play out with last week seeing the euro currency falling below the support zone of 1.2635 – 1.2333 area. We expect to see this level being re-tested once again for resistance while to the downside, the common currency could be seen extending the declines to 1.2179 level of support.