Forex Previews

ECB set to expand pandemic stimulus but size and split views may hurt euro – Forex News Preview

Posted on June 2, 2020 at 2:17 pm GMT

The European Central Bank is widely expected to announce a ramping up of its pandemic emergency purchase program (PEPP) on Thursday at 11:45 GMT as the Eurozone economy slowly emerges from weeks of lockdown. But as the euro rallies on the prospect of a double dose of fiscal and monetary stimulus, a smaller-than-anticipated increase in the PEPP and signs of opposition to further policy easing may spoil the party. Pandemic stimulus to be boosted The ECB has been dropping strong [..]

Bank of Canada may not change course as Macklem takes the helm – Forex News Preview

Posted on June 2, 2020 at 6:52 am GMT

The Canadian dollar may show fresh volatility on Wednesday after the Bank of Canada’s new chief holds his first policy meeting, with the rate announcement scheduled to be released at 14:00 GMT. Interest rates are expected to remain steady, while additional lending through corporate bond purchases cannot be excluded if the central bank wants to help more amidst lingering COVID-19 uncertainties and elevated domestic risks. Yet, what could attract greater attention, and hence move the loonie, is the central bank’s [..]

Week Ahead – ECB, RBA, and BoC meetings ahead of nonfarm payrolls

Posted on May 29, 2020 at 1:12 pm GMT

The coming week is action-packed, with three central bank meetings, the resumption of critical Brexit talks, and the release of the US jobs report. The ECB looks primed to expand its QE program but paradoxically, that may not hurt the euro. Neither the Reserve Bank of Australia nor the Bank of Canada is unlikely to act – those currencies could be driven mainly by risk sentiment and US-China tensions. Meanwhile, although markets ignored scary economic data on the way down, [..]

RBA meets as Australia reopens for business, aussie rallies – Forex News Preview

Posted on May 29, 2020 at 12:38 pm GMT

The Reserve Bank of Australia is scheduled to hold a policy meeting on Tuesday with an announcement expected at 05:30 GMT. A day later, the GDP growth estimate for the first quarter is due at 01:30 GMT, making it an important week for the very bullish looking Australian dollar. However, with the growth picture improving fast and investors already having made up their minds that the virus hit on the Australian economy won’t be as severe as initially feared, next [..]

Canadian GDP data may not be a game changer for the loonie – Forex News Preview

Posted on May 27, 2020 at 3:30 pm GMT

While markets are shifting focus to the second half of the year, hoping to see signs of economic recovery on the back of easing lockdown measures, the loonie will take a glance at Friday’s Q1 GDP numbers at 12:30 GMT. The monthly GDP readings for March may attract special attention as this was the month the government ordered the quarantine. Yet, the overall ugly outcome may prove outdated and probably not a game changer for the rising loonie. GDP growth [..]

Eurozone ESI and inflation unlikely to distract euro ahead of ECB decision – Forex News Preview

Posted on May 27, 2020 at 10:16 am GMT

The Economic Sentiment Indicator (ESI) and preliminary inflation readings will be the data highlights in the Eurozone this week. The ESI is out on Thursday and the flash inflation estimate will follow on Friday; both are due at 09:00 GMT. The two reports are expected to paint contrasting pictures as the ESI should tick higher – in line with other business surveys – as the lockdowns are relaxed, while the price data may sound alarm bells about the deflationary impact [..]

Deluge of US data unlikely to excite dollar, but risk tones might – Forex News Preview

Posted on May 27, 2020 at 9:29 am GMT

In America, there’s a flood of data coming up towards the end of the week. Durable goods orders and the weekly jobless claims are due at 12:30 GMT on Thursday, while Friday brings consumption and income numbers ahead of a speech by Fed chief Powell (15:00 GMT). For the dollar though, none of these is likely to have much of an impact. Instead, the reserve currency may be driven mainly by how risk sentiment evolves. Overall, it’s difficult to envision [..]

Week Ahead – US-China feud to stay under spotlight as data takes a backseat

Posted on May 22, 2020 at 12:04 pm GMT

Virus recovery hopes have gotten a boost after preliminary PMI readings for May rebounded more strongly than expected, underscoring the market optimism. But with economic releases set to quieten down in the coming week, Washington’s increasingly hostile language against China threatens to upset the dubious risk-on theme. Any panic-driven sell-off in risk assets could be accentuated from another anticipated plunge in personal consumption and durable goods orders in the US, which will be the main data highlights of the next [..]

Euro could get positive boost from flash PMI figures; ECB minutes on the agenda too – Forex News Preview

Posted on May 20, 2020 at 1:37 pm GMT

The Eurozone’s flash PMI readings for the month of May will hit the markets on Thursday at 08:00 GMT, likely showing a reviving business sector as most member states moved forward with their re-opening plans. The data are expected to contribute to the bullish atmosphere the German-Franco deal for a virus relief fund created for the euro this week, exposing the currency to fresh buying pressure. On Friday, the ECB meeting minutes could clarify if there is any willingness for [..]

UK PMIs unlikely to rescue pound from mounting risks – Forex News Preview

Posted on May 19, 2020 at 1:40 pm GMT

In Britain, the preliminary PMIs for May will hit the markets at 08:30 GMT Thursday, ahead of retail sales for April at 06:00 GMT on Friday. The PMIs are expected to rise, but to remain deep within contractionary waters, while retail sales are primed for a record collapse. As for the pound, it is being battered from all sides. The UK economy will reopen very slowly, investors are worried that today’s exploding deficit will result in austerity tomorrow, the BoE [..]

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