Daily Forex Market Preview, 10/04/2018
The U.S. dollar was seen extending the declines from last Friday. The day was relatively quiet but news of the U.S. imposing fresh sanctions on key Russian industries and personnel caused a flutter.
The Russian ruble was seen weakening strongly on the freshly announced sanctions. In the Eurozone, German trade balance figures were weak as both imports and exports fell sharply during the month in February.
This brought down the German trade surplus only slightly. The euro was however unchanged on the news.
The BoC’s business outlook survey data released yesterday showed an overall improvement as the data reflected positive sentiment for the first quarter of 2018. Firms were optimistic that sales would increase in the near term.
Looking ahead, the economic data for the day will see the French industrial production numbers. BoE Member and economist Andy Haldane will be speaking during the day. In the U.S. trading session, the producer prices index data will be coming out. Economists forecast that producer prices rose at a somewhat mixed pace during March.
EURUSD 10-04-2018 Intra-day analysis
EURUSD (1.2314): The EURUSD was seen posting a modest rebound from the 1.2241 level and extended the gains for the second day. The breakout above 1.2300 is likely to pave way for further gains as price is likely to test the next resistance level at 1.2385. In the near term, the current pullback could stall near 1.2300 level of support. A rebound off this support could see the near term gains. However, in the event there is a risk of price action failing to find support at 1.2300, then we expect the EURUSD to fall back below the support and ease toward the 1.2243 level.