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.
GBPUSD 08-03-2018 Intra-day analysis
GBPUSD (1.3907): The British pound was seen consolidating near 1.3902 level of resistance yesterday. A breakout above this level could signal further gains to the upside with price likely to target the previous highs established near 1.4200 region. On the 4-hour chart, the reversal back to 1.3902 marks a retest of the support/resistance level and the previous breakout from the triangle pattern. We expect to see price action continuing to consolidate near this level with the potential for a decline back to 1.3611 – 1.3589 level where support is yet to be tested.