Forex Previews

Australian jobs data could strengthen the case for more stimulus – Forex News Preview

Posted on September 18, 2019 at 4:11 pm GMT

Asian traders will see the release of the Australian monthly employment report on Thursday at 0130 GMT and expectations are for a gloomy set of figures that may likely raise the odds for another rate cut later in the year. On Tuesday, the minutes of the Reserve Bank of Australia’s September policy meeting reminded markets that the door for further monetary easing remains open as policymakers closely monitor global and domestic economic conditions. Having cut interest rates twice in the summer, the RBA decided to [..]

SNB meeting: Too early to follow in Draghi’s footsteps? – Forex News Preview

Posted on September 18, 2019 at 11:35 am GMT

The Swiss National Bank (SNB) will announce its latest decision at 07:30 GMT on Thursday. For the first time in a long time, investors think this meeting is ‘live’ and assign a ~30% probability for a quarter-point rate cut. That said, the risks seem tilted towards the SNB keeping its rate powder dry for now and simply using FX intervention to prevent the franc from appreciating further, which may lift the Swiss currency on the decision. It is no secret [..]

New Zealand GDP growth likely slowed in Q2; more rate cuts may be needed – Forex News Preview

Posted on September 18, 2019 at 9:46 am GMT

New Zealand will publish GDP data on Wednesday at 22:45 GMT and expectations are that the economy slowed notably in the second quarter. The country’s central bank has already embarked on an aggressive rate cutting cycle and the data is likely to do little in paring expectations that additional policy easing will be required. A soft report would make it even more difficult for the New Zealand dollar to fight off bearish bets as the currency moves to the bottom [..]

What to watch out of the UK this week? – Forex News Preview

Posted on September 17, 2019 at 2:10 pm GMT

Unlike its major counterparts, the Bank of England (BoE) is not expected to join the dovish camp on Thursday when it announces its rate decision as the country has more Brexit developments to chew on. And while stable interest rates are better than an unexpected rate cut for the volatile pound, this week’s data out of Britain are not looking very promising, keeping downside risks alive in the market. Investors will also be interested to hear the UK’s Supreme Court’s decision on whether the Prime [..]

Bank of Japan mulls more stimulus; is a surprise on the way? – Forex News Preview

Posted on September 17, 2019 at 12:27 pm GMT

The Bank of Japan will conclude its two-day policy meeting on Thursday, a few hours after the Federal Reserve announces its latest rate review. After the European Central Bank decided to restart its asset purchase program in the past week and the Fed is widely expected to cut rates for the second time this year, pressure is mounting on the BoJ to follow suit. However, fresh policy easing could arrive in Japan sooner than many expect amid reports the Bank [..]

Fed decision: A rate cut with a not-so-dovish spin? – Forex News Preview

Posted on September 17, 2019 at 11:10 am GMT

The Fed is almost certain to slash rates by a quarter-point at 18:00 GMT on Wednesday. With such an action nearly fully priced in already, the market reaction may depend mainly on the rate projections in the new ‘dot plot’ and Chairman Powell’s remarks during the press conference. Considering the more tranquil tone on trade lately and stocks being near record highs, the risks seem tilted towards Powell putting a not-so-dovish spin on any cut, which may help the dollar [..]

Week Ahead – Central banks bonanza awaits: Fed might disappoint, BoJ could surprise, more Brexit blues for BoE

Posted on September 13, 2019 at 1:30 pm GMT

With the ECB meeting over, it’ll be the turn of other central banks to try and impress stimulus-hungry markets with no less than four major policy meetings still to come. The Bank of Japan, the Bank of England, the Swiss National Bank, and of course, the Federal Reserve will announce their decisions over the next seven days. Economic data will also make the headlines as Canada, Japan and the United Kingdom publish inflation stats, China releases industrial production and retail [..]

China’s monthly data eyed as aussie rides trade optimism – Forex News Preview

Posted on September 13, 2019 at 10:27 am GMT

The world’s second-largest economy will see the release of its industrial production, retail sales, and fixed asset investment data for August early on Monday, at 02:00 GMT. Forecasts point to a pickup in most indicators, which if confirmed, may signal that Beijing’s stimulus measures are finally starting to pay off. While that may help the China-sensitive aussie recover more ground, any signals around the upcoming trade talks could prove far more important for the Australian currency. The Chinese economy slowed [..]

US retail sales and CPI inflation should not surprise – Forex News Preview

Posted on September 11, 2019 at 3:05 pm GMT

Another round of high-level trade talks between Washington and Beijing has been arranged and the spotlight now turns back to data releases as markets are trying to figure out whether there is a need for a sharper rate cut, ahead of the Federal Market Open Committee’s policy meeting next week. Retail sales and the Consumer Price Index will feature the US calendar on Thursday and Friday respectively at 1230 GMT, though the results may look familiar. US and China prefer stimulus than solving [..]

ECB meeting: Is ‘Super Mario’ coming with a bazooka or a toy gun? – Forex News Preview

Posted on September 11, 2019 at 11:50 am GMT

The highly anticipated European Central Bank (ECB) meeting concludes on Thursday at 11:45 GMT, and a press conference by President Mario Draghi will follow at 12:30 GMT. Policymakers are almost certain to deliver a blend of measures, such as a rate cut combined with another dose of QE. Therefore, the question facing markets is how big this stimulus package will be. It’s a close call, but the risks seem tilted towards a larger-than-expected rate cut, which may weigh on the [..]

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