Daily Forex Market Preview, 15/03/2018
The uncertainty in the USD continued to linger as the first quarter GDP projections were revised lower following a weak retail sales report. Headline retail sales fell 0.1% in February marking a third month of decline and missed expectations of a 0.3% increase.
German inflation report for February showed no change while the industrial production figures for the Eurozone also came out weaker than expected. ECB President Mario Draghi spoke at the ECB Watchers conference yesterday where he said that officials will remain patient and accommodative as inflationary pressures are yet to build. Later in the evening, New Zealand GDP data showed that the economy expanded at a pace of 0.6% in the quarter ending December. This was below forecasts with the annual GDP rate for 2017 rising at a slower pace.
Looking ahead, the Swiss national bank will be holding its quarterly monetary policy meeting today. No changes are expected from the central bank at today’s meeting. The Norges bank will also be holding its monetary policy meeting today. Interest rates are expected to remain steady at 0.5%.
XAUUSD intra-day analysis
XAUUSD (1326.82): Gold prices were seen posting a consolidation just below the 1328 level. Price action has been flat for nearly four days trading around the major resistance level. To the upside, a break above 1328 could see gold prices testing the falling trend line which could act as dynamic resistance. Further gains can be expected only on a close above the trend line. Alternately, a reversal around the 1328 region could signal gold prices slipping back to the 1307 level of support.