XAUUSD 19-04-2018 Intra-day analysis.

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.

XAUUSD 19-04-2018 Intra-day analysis

XAUUSD (1352.22): Gold prices were seen erasing the minor losses with price action pushing higher at the time of writing. The resistance level at 1354 remains a strong level which could see the current gains being stalled. There is scope for gold prices to breakout higher if the resistance level is breached. To the downside, the rising trend line is expected to hold prices support, but a break of the rising trend line could signal a decline back towards the support level at 1325.50 level.