Gold Maintains Gains As Brexit Uncertainty Continues

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Today’s Program

Industrial production grew 0.6% from December after falling 0.5% previously. The data also beat estimates. The services output rose 0.3% whilst building output grew 2.8percent and reversed the declines from December.
This pushed down the yearly inflation rate from 1.6% to 1.5% in February. This was the lowest increase since August last year.

UK Data

By Orbex
Economic docket from the eurozone is quiet today. The NY trading session may see the launch of durable goods orders. Core durable goods are predicted to rise 0.1percent on the month. Meanwhile, the headline durable goods orders are expected to drop 0.5% on the month.
By Orbex

Economic reports in the UK showed that the GDP increased 0.2% in the 3 months to January. On a per day basis, the economy picked up the speed, rising 0.5%. This offset the declines from production in metals, cars and construction repairs.

XAUUSD Intraday Diagnosis

The US PPI record is on the tap also. Expectations are for headline manufacturer prices to rise 0.2percent after falling 0.1percent previously. Core PPI will likely rise 0.2%, signaling a slightly smaller pace of growth following a 0.3% increase the month before.
USDJPY (111.28): USDJPY has been trading subdued with a lot of consolidation occurring at the 111.21 amount. Price action remains flat in the short term since the USD tries to test the upcoming main immunity degree at 111.69. Price needs to break past this degree and over the preceding highs to keep the bullish momentum. But, failure to do so could signal a possible move to the disadvantage. A break down below the lows of 110.93 might signal a movement towards the 109.74 region in the medium term.


EURUSD Intraday Diagnosis

Investors, however, overlooked the information because the UK parliament once more rejected the Brexit deal despite initial optimism. The Brexit bill was defeated by the majority of 142, with 391 members of the deal and 242 approving it.

XAUUSD (1305.02):¬†Gold maintained the profits on Tuesday as cost action advanced to check 1305 level earlier now. The Stochastics oscillator is preserving the concealed bearish divergence currently and could trigger a possible move to the downside. The lower support at 1290.39 may be analyzed more securely if there’s a reversal in the 1305 — 1306 level. If gold keeps the bullish momentum, then we could expect the 1305 — 1306 level to clear, with further gains likely to push gold prices to the 1322 — 1319 level. There, immunity will be analyzed.
Forecasts suggest that construction spending information can grow by 0.4percent over the month after falling 0.6percent before.

Manufacturing production rose 0.8% over the month beating quotes of a 0.2percent increase. The gains came from increased output from the pharmaceuticals sector and followed a 0.7% reduction.

Having cleared the small immunity level at 1.1256, the common currency closed above this amount. It’s now nearing a retest of the next primary resistance at 1.1327 — 1.1309. In the long run, any reductions may be limited to 1.1256 at which we could establish support. Provided that the service level at 1.1256 isn’t breached, the EURUSD could maintain the bullish momentum.
The economic data now will observe the release of the UK’s annual budget. We anticipate the UK parliament to take an additional vote on a no-deal Brexit later in the day.

USDJPY Intraday Analysis