Forex Previews

Canada’s jobless rate to skyrocket; may fuel negative rate speculation – Forex News Preview

Posted on May 7, 2020 at 5:52 am GMT

Employment numbers for April are due out of Canada on Friday (12:30 GMT) but as far as jobs reports go, this will be one that nobody will be looking forward to. Canada has been no exception in the global pandemic of the coronavirus and after losing one million jobs in March, the employment picture is about to get much worse. But as the economy faces a once in a generation crisis, the Bank of Canada’s newly appointed governor is causing [..]

BoE policy meeting: Quarterly forecasts could steal the limelight – Forex News Preview

Posted on May 6, 2020 at 2:04 pm GMT

The Bank of England’s new governor Andrew Bailey will brief markets about the central bank’s policy decision and announce his first quarterly economic projections on Thursday at 06:00 GMT, earlier than the usual timing in order to comment on the interim Financial Stability report as well. Having deployed big stimulus firepower in previous meetings, the bank could stand pat this week, with markets turning attention to growth forecasts after warnings of a painful contraction in Q2. A speech by the [..]

Worst nonfarm payrolls ever? – Forex News Preview

Posted on May 6, 2020 at 1:10 pm GMT

The US employment report for April will hit the markets at 12:30 GMT on Friday and will reveal just how much economic damage the pandemic has inflicted on the American economy. Forecasts point to a breath-taking 21.8 million job losses, which would push the unemployment rate up to a staggering 16%. As for the dollar, economic data have little impact nowadays, so its near-term direction may depend on risk appetite. Overall, it’s still difficult to envision any real weakness in [..]

RBA to keep policy unchanged but forecasts may rattle aussie – Forex News Preview

Posted on May 4, 2020 at 12:12 pm GMT

The Reserve Bank of Australia will announce its latest policy decision on Tuesday (4:30 GMT) and is not anticipated to make any changes to the cash rate or its quantitative easing (QE) program. But as one of the newest members to the QE club, the RBA may also be the first to exit its emergency programs as the virus is brought under control in Australia and the Bank has had to make less purchases lately to keep the target on [..]

Week Ahead – Nonfarm payrolls: The market’s trial by fire?

Posted on April 30, 2020 at 2:17 pm GMT

The serenity that has encompassed global markets lately will be put to the test next week, when America’s nonfarm payrolls data reveal how much destruction the pandemic has left in its wake. The Bank of England and the Reserve Bank of Australia are unlikely to deliver anything new at their meetings, though both will likely maintain a very dovish tone. Overall, the recent flood of liquidity and stimulus has helped stabilize markets, but ultimately, the V-shaped recovery that is now [..]

Eurozone GDP set to shrink, pile pressure on ECB as EU dithers on virus aid – Forex News Preview

Posted on April 28, 2020 at 2:00 pm GMT

With Europe’s biggest economies shutting down in March as the coronavirus wreaked havoc across the continent, no one is expecting the Eurozone’s first quarter GDP estimate due on Thursday (09:00 GMT) to be anything but abysmal. But just as in previous crises, it is the European Central Bank that has been first to come to the rescue and with European Union leaders still bickering over the details of a virus recovery fund, it will be up to Lagarde and her [..]

Fed meeting: Taking a breather – Forex News Preview

Posted on April 28, 2020 at 10:40 am GMT

The Fed concludes its meeting at 18:00 GMT on Wednesday and having thrown everything including the kitchen sink to protect the US economy in the battle against the virus, no action is expected this time. As such, the market reaction may depend mainly on Chairman Powell’s remarks half an hour later. From a risk-management perspective, Powell has more incentive to soothe investors’ nerves and hint that more stimulus is possible, which could briefly hurt the dollar. Preventing a financial crisis [..]

Bank of Japan’s policy meeting eyed after unlimited bond buying rumors – Forex News Preview

Posted on April 24, 2020 at 2:38 pm GMT

Bank of Japan’s policy meeting will kick off on Monday, but it will not be a usual two-day gathering this time as policymakers are expected to reach their decision the same day. While under other circumstances, such an adjustment would signal an eventful meeting, the current virus situation may pressure the central bank for additional corporate aid and likely some flexibility on government bond purchases, whereas there is no doubt that interest rates will remain steady. May keep the focus [..]

Week Ahead – Fed, ECB and BoJ meet ahead of GDP data; can central banks do any more?

Posted on April 24, 2020 at 12:31 pm GMT

It’s been a hectic couple of months for central banks around the world as most have held at least one unscheduled meeting as the virus crisis unfolded. Hence, next week’s regular gatherings by the Federal Reserve, European Central Bank and the Bank of Japan may not bring anything new, as aside from the interim meetings, policymakers have been keeping the communications channels wide open and so the possibility of major surprises appears slim. Nevertheless, markets may need the soothing words [..]

US jobless claims, Markit PMIs and durable goods may not spook dollar – Forex News Preview

Posted on April 22, 2020 at 3:41 pm GMT

The US agenda is featuring initial jobless claims (12:30 GMT) and preliminary Markit PMI figures (13:45 GMT) on Thursday followed by durable goods (12:30 GMT) on Friday. Expectations, though, are for a neutral reaction in the US dollar. Despite the shocking expansion of Covid-19 in the US, the greenback continued to overperform against a basket of major currencies year-to-date, remaining above the 100 level although it could not steal demand from the Japanese yen due to the currency’s stronger safe-haven feature. The fact that [..]

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