Daily Forex Market Preview, 27/04/2018
The European Central Bank left monetary policy unchanged at its meeting yesterday as widely expected. The central bank retained the same language from the previous monetary policy meeting. At the press conference, the ECB President Draghi said that the central bank was monitoring the developments in the economy while he downplayed the recent soft patch in the economy. The euro was seen posting strong losses on the day.
Elsewhere, economic data over the day saw the release of the core durable goods orders which remained flat and fell short of expectations of 0.5%. Previous month’s data was revised down to 1.0%. Durable goods orders however increased 2.6% on the month. This beat forecasts of 1.6% on the month.
Looking ahead, the GDP data from the U.S. and the UK will be coming out today. The U.S. economy is forecast to rise 2.0% on the month while the UK’s GDP is forecast to rise at a slower pace of 0.3%. Later in the day, the Bank of England Governor Carney is expected to speak.
EURUSD 27-04-2018 Intra-day analysis
EURUSD (1.2111): The EURUSD currency pair posted strong losses on the day after price action failed to find support at 1.2180 level. The breakdown below this level signaled a decline with the EURUSD now seen trading close to the lower support level at 1.2090. We expect to see some consolidation at this level and could potentially mark a short term reversal. The short term correction could see the EURUSD test the 1.2180 level where resistance could be established.
