Daily Forex Market Preview, 13/04/2018
The euro currency was seen extending the declines on the day after the ECB meeting minutes provided to be more dovish than expected. The minutes released yesterday saw officials downplaying the change to the ECB’s monetary policy statement. The central bank cited risks from the global trade uncertainty and the recent strengthening of the exchange rate.
Gold prices also gave up the gains from earlier this week after tensions surrounding the U.S. administration’s remarks on Syria and Russia eased. Equity markets rallied as risk sentiment improved.
Looking ahead, the economic calendar for the day is relatively quiet. Only the German final inflation figures will be coming out in the early part of the day. Economists forecast that the German inflation rose at a pace of 0.4%, matching the flash estimates. Later in the day, the trade balance figures from the Eurozone will be coming out. Following the decline in German imports and exports, it is expected that the Eurozone trade balance would also narrow.
In the NY trading session, the preliminary inflation expectations will be released by the University of Michigan.
XAUUSD 13-04-2018 Intra-day analysis
XAUUSD (1339.39): Gold prices continued to slip as price action fell to the lower support of 1336. The minor bullish engulfing pattern formed on the 4-hour chart suggests a near term rally to the upside. Gold prices could be seen retesting the resistance level at 1357 level in the near term. A breakdown below 1336 could however signal further declines as gold prices could test the lower support at 1328 – 1325 levels.