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.
XAUUSD 19-03-2018 Intra-day analysis
XAUUSD (1311.59): Gold prices were also seen closing the week lower but overall, the trend remains supported above 1307. Only a breakdown below this level could signal further declines toward 1282 – 1274 region. In the near term, the 4-hour chart shows a possible retest toward 1318 – 1317 level where short term resistance could be established. A reversal at this level could confirm the downside bias in gold targeting 1307 and eventually to the 1282 level of support.