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.
GBPUSD 16-03-2018 Intra-day analysis
GBPUSD (1.3922): The British pound was seen trading soft above 1.3902. Following the doji session two days ago, price action was seen closing on a bearish note yesterday. A close below 1.3902 is required for the currency pair to post further declines. The near-term declines could stall near the 1.3905 level where support could be established. GBPUSD is yet to test the 1.4007 level which marks the near-term target for the bullish ascending triangle formed on the 4-hour chart. However, if price closes below 1.3902, we can expect dynamic support coming in from the falling trend line.