Daily Forex Market Preview, 20/03/2018
The U.S. dollar was on the back foot yesterday. The euro was seen retracing it’s the gains strongly which gains came amid investor uncertainty ahead of the FOMC meeting due on Wednesday.
Developments from Brexit included the EU and the UK striking a transitory deal. According to reports, the UK will remain in the EU until end of 2020 but with restricted powers. The British pound rallied on the news as the currency touched intraday highs of 1.4088.
Looking ahead, the economic calendar for the day will see the release of the inflation data for February from the UK. Economists forecast that inflation might have slowed down to 2.8% on a year over year basis in February. Core inflation is also expected to slow to 2.5% in February after rising 2.7% previously.
From the Eurozone, the German ZEW economic sentiment and the Eurozone ZEW economic sentiment reports will be released. Later in the day, the Eurozone consumer confidence data will also be coming out.
EURUSD 20-03-2018 Intra-day analysis
EURUSD (1.2337): The euro currency was seen posting strong gains yesterday as price action posted a reversal following last week’s declines. However, the gains stalled near the resistance zone of 1.2363 – 1.2333 level. A reversal off this level could once again put the EURUSD back into the sideways range with the lower support at 1.2179 likely to be tested. With the Fed meeting due tomorrow, we expect to see the ranging price action continue. A breakout from either the resistance or the support level could potentially establish the direction in the currency pair.