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.
GBPUSD 10-04-2018 Intra-day analysis
GBPUSD (1.4133): The British pound was seen posting strong gains on the day as price action briefly rallied to the test the resistance level at 1.4162. GBPUSD quickly posted a rebound off this level but we expect to see some consolidation taking place. In the near term GBPUSD could retest this resistance level. Price action is expected to remain range bound in the near term with any declines likely to test the support at 1.4093. A break down below this support level will signal a move back to the previous support level.