Daily Forex Market Preview, 23/04/2018
The U.S. dollar was seen posting gains by Friday’s close. Economic data was mostly quiet on the day. Canada’s inflation report showed a slower than expected pace of rise in inflation. Headline CPI was seen rising just 0.3%, missing forecasts of a 0.4% increase. This was also slower than the 0.6% increase in inflation registered in the month before.
Core retail sales data showed a flat print for the month with previous month’s core retail sales revised higher to show 1.0% increase. Headline retail sales increased 0.4% on a month over month basis as expected.
Looking ahead, the economic calendar is busy for the day ahead from the Eurozone. Flash manufacturing and services PMI reports will be coming out reflecting on the state of business activity in the Eurozone for the month of April. In the first three months, manufacturing and services sector’s growth was seen stalling.
The NY trading session will see the BoC Governor Poloz speaking in the evening. The BoC governor’s speech comes just a week after the Bank of Canada left interest rates unchanged but signaled further rate hikes this year. Economic data from the U.S. will see he release of the flash manufacturing PMI from Markit.
GBPUSD 23-04-2018 Intra-day analysis
GBPUSD (1.4016): The British pound continued to extend losses with price action closing near the strong support level of 1.4000 region. The declines could potentially stall in the near term with a rebound off the support level widely expected. To the upside, the resistance level at 1.4162 could be tested and GBPUSD could maintain the range in the near term. To the downside, a breakdown below 1.4000 level could signal further declines toward the 1.3902 level of support.
