Daily Forex Market Preview, 20/03/2018
The U.S. dollar was on the back foot yesterday. The euro was seen retracing it’s the gains strongly which gains came amid investor uncertainty ahead of the FOMC meeting due on Wednesday.
Developments from Brexit included the EU and the UK striking a transitory deal. According to reports, the UK will remain in the EU until end of 2020 but with restricted powers. The British pound rallied on the news as the currency touched intraday highs of 1.4088.
Looking ahead, the economic calendar for the day will see the release of the inflation data for February from the UK. Economists forecast that inflation might have slowed down to 2.8% on a year over year basis in February. Core inflation is also expected to slow to 2.5% in February after rising 2.7% previously.
From the Eurozone, the German ZEW economic sentiment and the Eurozone ZEW economic sentiment reports will be released. Later in the day, the Eurozone consumer confidence data will also be coming out.
XAUUSD 20-03-2018 Intra-day analysis
XAUUSD (1315.26): Gold prices were seen trading within the range after price action briefly touched down to 1307.80 level. We expect the downside bias to continue in the short term as gold prices could once again test this familiar support level. There is scope for price to potentially break down below 1307.80 region in which case, further declines could push gold prices to the 1300.00 round number followed by a test of support near the 1282 – 1274 level. To the upside, a close above the recent highs at 1319 could mean further gains toward 1328.00 level of resistance.