Daily Forex Market Preview, 11/04/2018
The markets were buoyant yesterday after the speech by Chinese Premier Xi struck a positive tone among investors. Xi promised to reform China’s markets including opening the automobile and insurance sector for foreign investors who could claim a majority stake. Xi’s speech eased concerns about a looming trade war.
On the economic front, data included the French industrial production figures which rose just 1.2% on the month, missing estimates of 1.5%. In the U.S. the producer prices index saw a better than expected print. Both headline and core PPI rise 0.3% on the month beating estimates.
Looking ahead, investors will be focusing on the FOMC meeting minutes that will be released today. The minutes cover the Fed’s central bank monetary policy meeting held in March where interest rates were hiked by 25 basis points.
Ahead of the FOMC meeting minutes, the U.S. monthly consumer price index data will be coming out. Economists forecast that the headline CPI was unchanged on the month in March while core CPI picked up 0.2%, rising at the same pace as the month before.
The UK’s manufacturing production data will be coming out today where estimates show a 0.2% increase on the month, slightly higher from 0.1% previously. Construction output and industrial production figures are also expected to be released today.
EURUSD 11-04-2018 Intra-day analysis
EURUSD (1.2362): The EURUSD currency pair extended gains for the third consecutive day, rising to a fresh two week high. Price action is likely to continue to the upside extending the gains toward the resistance level seen at 1.2385. A retest of this resistance level is likely to keep price action range bound within the lower support level of 1.2300. We therefore expect to see the EURUSD maintain a sideways range in the near term.