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EURUSD 19-04-2018 Intra-day analysis.

BoC holds rates steady

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Daily Forex Market Preview, 19/04/2018

The U.S. dollar was seen trading mixed across the board on Wednesday. Data from the UK showed that consumer prices slowed even further, rising just 2.5% on the year ending March. This was well below expectations of a 2.7% increase. Core CPI was also weaker, posting an increase of 2.3% on the year, slowing from 2.4% previously.

Inflation data from the Eurozone showed that headline inflation rate slowed to a pace of 1.3% in the year ending March compared to February’s print of 1.4%. Core CPI for the Eurozone was steady at 1.0% as forecast.

The Bank of Canada was seen holding the interest rates steady at 1.25% but the central bank signaled hawkish views which sent the Canadian dollar briefly higher on the day.

Looking ahead, the economic calendar for the day will start off with the release of the retail sales report from the UK. Economists’ polled forecast a 0.5% decline in retail sales for the month of March. This marks a contraction in retail sales compared to February’s print of 0.8%.

Later in the day, FOMC member, Lael Brainard will be speaking. Brainard is expected to maintain her hawkish views on the economy. On the economic front, the data from the U.S. will cover the Philly Fed manufacturing index which is expected to fall to 20.8.

Other Fed members due to speak over the week include Loretta Mester.

EURUSD 19-04-2018 Intra-day analysis

EURUSD (1.2375): The EURUSD was seen trading slightly bullish on the day as price action retraced the losses from the previous day. The consolidation near the 1.2400 level of resistance continues with the common currency unable to break past this level. The failure to break past the resistance level signals a continued sideways range in EURUSD. To the downside, EURUSD could see a retest of the lower support at 1.2300. The price action also points to a potential ascending triangle pattern with higher lows being formed. Therefore, further gains cannot be ruled out on a breakout above 1.2400 which could signal a move toward 1.2430.

 

 

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