Daily Forex Market Preview, 06/03/2018
The euro currency was seen muted to the outcome of the Italian elections which showed rising support for the anti-establishment parties while also resulting in a hung parliament. The various parties, led by the 5 Star Movement is expected to start coalition talks.
On the economic front, the UK’s services PMI data improved, rising to 54.5 in February as the data beat estimates of 53.3 and gained from January’s 53.0. In the Eurozone, retail sales data showed a 0.1% decline which was below estimates of a 0.3% increase.
The non-manufacturing PMI from ISM showed a flat print, as the index registered a print of 55.9, which matched estimates and was unchanged from the previous month’s print.
For the day ahead, the economic calendar today will feature comments from NY Fed President; William Dudley followed the U.S. factory orders. Later in the day, the Bank of England’s chief economists, Andy Haldane will be speaking. Following the RBA’s decision earlier today, the RBA Governor Lowe is expected to speak later in the day.
XAUUSD 06-03-2018 Intra-day analysis
XAUUSD (1322.40): Gold prices remained muted to the Italian election outcome yesterday. However, price action is seen trading within Monday’s range at the time of writing. Following the brief retest to the resistance level at 1328 – 1327, gold prices edged lower only to reverse some of the gains. A breakout above the resistance level could keep gold prices biased to the upside with the potential to target 1357 level of resistance. To the downside, gold prices will need to close lower below 1317 to post the declines toward 1303.