XAUUSD 11-04-2018 Intra-day analysis.

FOMC minutes in focus. Trade war worries ease

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Daily Forex Market Preview, 11/04/2018

The markets were buoyant yesterday after the speech by Chinese Premier Xi struck a positive tone among investors. Xi promised to reform China’s markets including opening the automobile and insurance sector for foreign investors who could claim a majority stake. Xi’s speech eased concerns about a looming trade war.

On the economic front, data included the French industrial production figures which rose just 1.2% on the month, missing estimates of 1.5%. In the U.S. the producer prices index saw a better than expected print. Both headline and core PPI rise 0.3% on the month beating estimates.

Looking ahead, investors will be focusing on the FOMC meeting minutes that will be released today. The minutes cover the Fed’s central bank monetary policy meeting held in March where interest rates were hiked by 25 basis points.

Ahead of the FOMC meeting minutes, the U.S. monthly consumer price index data will be coming out. Economists forecast that the headline CPI was unchanged on the month in March while core CPI picked up 0.2%, rising at the same pace as the month before.

The UK’s manufacturing production data will be coming out today where estimates show a 0.2% increase on the month, slightly higher from 0.1% previously. Construction output and industrial production figures are also expected to be released today.

XAUUSD 11-04-2018 Intra-day analysis

XAUUSD (1341.40): Gold prices edged higher on the day breaking above the 1336 handle. We expect the upside momentum to continue with the risk of gold prices falling back to 1336 handle to establish support. A rebound off this level will confirm the upside bias in gold prices. The next target comes in at 1344 level and in the near-term gold prices could pull back from the current highs and maintain a sideways range.


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