Daily Forex Market Preview, 13/03/2018
Lack of fundamentals on a quiet trading day left the U.S. dollar to trade flat following Friday’s decline. However, the USD was seen trading mixed across the board especially with the commodities turning weaker on the day.
Looking ahead, the inflation data coming out today will be a major event to watch with both headline and core inflation rate expected to rise at a slower pace compared to January’s solid gains. On an annual basis, headline CPI is expected to rise slightly while core CPI is expected to remain flat at a pace of 1.8%.
Elsewhere, the BoC Governor Poloz is expected to speak later in the afternoon followed by second tier data from Japan.
GBPUSD 13-03-2018 Intra-day analysis
GBPUSD (1.3889): The British pound was seen closing near the resistance level of 1.3902 on Monday and a bearish close today could see price action resuming the decline toward 1.3530. On the 4-hour chart we however see that the price action has consolidated into an ascending triangle pattern. Therefore, a potential breakout above the resistance level at 1.3902 could push the GBPUSD targeting 1.4070 level which would mark the previous high that was formed in the symmetrical triangle pattern.