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.
GBPUSD 19-04-2018 Intra-day analysis
GBPUSD (1.4202): The British pound is seen extending the declines for a second day as price action is currently seen trading below the minor support level of 1.4232 level. The break down below this level signals a move toward the major support level at 1.4162. A retest of this support level could see prices posting a rebound. To the downside, further declines could be expected in the event that GBPUSD fails to hold the support. The next lower support is seen at 1.4013.