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.
GBPUSD 19-03-2018 Intra-day analysis
GBPUSD (1.3918): The British pound closed on Friday with the doji but price action was supported above the 1.3902 level of support. Although price action has failed to post any big gains above this level we expect the consolidation to continue in the short term. Any near-term dips could send the British pound to retest the 1.3902 level while to the upside the price area of 1.4000 could potentially be tested following the breakout after the bullish ascending triangle pattern.