FX TALKING POINTS:
- Gold Price Outlook Mired by Bearish Outside-Day (Engulfing) Candle. Relative Strength Index (RSI) Flops Ahead of Overbought Territory.
USD/JPY REBOUND FIZZLES FOLLOWING DISMAL U.S. CONSUMER CONFIDENCE SURVEY.
USD/JPY struggles to preserve the advance from earlier this week as the U.S. Consumer Confidence survey unexpectedly narrows in March, but updates to the 4Q U.S. Gross Domestic Product (GDP) report may ultimately fuel the near-term rebound in dollar-yen should the fresh figures encourage the Federal Open Market Committee (FOMC) to deliver four rate-hikes in 2018.
The final revision to the GDP report is expected to show an uptick in the growth rate, with the economy projected to grow an annualized 2.7% versus an initial forecast of 2.5%. A batch of positive developments may heighten the appeal of the greenback as it raises the Fed’s scope to extend its hiking-cycle, and the FOMC may prepare U.S. households and businesses for an imminent rate-hike as ‘the Committee expects that economic conditions will evolve in a manner that will warrant further gradual increases in the federal funds rate.’
However, another set of below-forecast prints may continue to undermine the near-term rebound in USD/JPY, with the pair at risk of facing choppy prices as market participation is likely to thin ahead of the Easter holiday.