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.
XAUUSD 08-03-2018 Intra-day analysis
XAUUSD (1327.77): Gold prices were seen closing on a bearish note yesterday following the previous day’s strong gains. Price action closed below 1328 level which served as resistance previously. A follow through is required in order to confirm the resistance level at 1328. Alternately, if price action posts an upside bounce, we could expect to see further gains coming. Gold prices will need to breakout above the previous highs posted near the 1340 region in order to confirm the upside bias.