Forex Previews

UK Services PMI could dampen pound volatility – Forex News Preview

Posted on June 4, 2019 at 10:14 am GMT

The past four weeks have been the hardest so far this year for the British pound but also for UK manufacturers, the IHS Markit/CIPS readings showed on Monday. According to analysts, the survey for the services sector might bring better results on Wednesday at 0830 GMT. Still, the outcome may not be very pleasing, reflecting the disruptions from the Brexit paralysis. In the first quarter of 2019, the British economy expanded at the fastest rate in more than a year as [..]

Eurozone flash inflation expected to tick down as political fractures weigh on euro – Forex News Preview

Posted on May 31, 2019 at 12:31 pm GMT

Flash inflation readings from the Eurozone next week could cause more misery for the euro, which is already under pressure from a transforming political landscape across the bloc and an empowered Matteo Salvini in Italy. Eurostat will publish the flash report on Tuesday at 09:00 GMT but the readings will probably not be good news for the European Central Bank as headline inflation is expected to decline. Eurozone inflation likely eased in May After rising by 1.7% year-on-year in April, [..]

RBA to cut rates, but will it signal aggressive easing? – Forex News Preview

Posted on May 31, 2019 at 12:07 pm GMT

The Reserve Bank of Australia (RBA) is widely expected to cut rates when it announces its policy decision on Tuesday at 04:30 GMT. With a cut fully priced in already, and another one by September, price action in the aussie will likely depend mainly on how aggressive the signals for future easing are. While the Bank may disappoint the bears at this meeting, the broader outlook for the currency remains negative. Markets are all but certain the RBA will embark [..]

Week Ahead – RBA and ECB meetings in focus; US jobs report eyed amid runaway dollar

Posted on May 31, 2019 at 10:48 am GMT

As the US dollar heads for fresh two-year highs, next week’s nonfarm payrolls report could be key in deciding whether the dollar’s persistent strength will hold out for much longer. The Australian dollar will also be under the spotlight as the country’s central bank could make its first rate cut in three years. The European Central Bank will meet too as the Eurozone struggles to escape the dark clouds hanging over it. In Canada, the latest employment report will be [..]

Dollar turns its sights to ISM PMIs – Forex News Preview

Posted on May 31, 2019 at 10:12 am GMT

The next key releases for the dollar will be the ISM manufacturing and non-manufacturing PMIs for May, due on Monday and Wednesday respectively, both at 14:00 GMT. Forecasts point to a rebound in both figures, but considering the escalation in trade conflicts, those seem overoptimistic. Disappointing numbers may hurt the dollar a little, but for the greenback to weaken substantially, some other major currency needs to become attractive again – a condition not satisfied yet. The US economy grew by [..]

Loonie awaits Q1 GDP growth on Friday – Forex News Preview

Posted on May 30, 2019 at 3:44 pm GMT

The Bank of Canada reiterated at its policy meeting on Wednesday that the economy will likely pick up growth in the second quarter of 2019. Market specialists, however, predict that GDP growth data could show early signs of recovery on Friday at 1230 GMT despite the global trade risks. After recording the smallest expansion of 0.4% in more than two years in Q4, the Canadian annualized GDP growth is expected to have inched up to 0.7% q/q in the first [..]

China’s manufacturers likely stuck in the doldrums in May as trade deal becomes elusive – Forex News Preview

Posted on May 29, 2019 at 8:03 am GMT

Manufacturing PMIs out of China in the coming days will provide investors with the first indication of how the world’s second largest economy performed in May. The official manufacturing gauge is due first on Friday at 01:00 GMT, followed by the Caixin/Markit manufacturing PMI on Monday at 01:45 GMT. With no end in sight to the year-long trade dispute between the US and China, manufacturing activity is at risk of contracting again from the mounting uncertainty, while the yuan is [..]

Dollar faces downside risks from upcoming inflation data – Forex News Preview

Posted on May 28, 2019 at 12:12 pm GMT

The second estimate of US GDP for Q1 will hit the markets on Thursday while the Fed’s preferred inflation gauge for April is due on Friday, both at 12:30 GMT. Investors may focus mainly on the PCE inflation numbers, where risks seem tilted towards a disappointment relative to forecasts. If so, that could fuel speculation for a more cautious tone at the Fed’s June 19 meeting and thereby, weigh on the dollar. Although still solid by most metrics, the US [..]

Australian Q1 capex expected to be soft, reinforce RBA rate cut bets – Forex News Preview

Posted on May 28, 2019 at 10:25 am GMT

Capital expenditure figures from Australia will be watched on Thursday (due at 01:30 GMT) as they will be a prelude to Q1 GDP estimates released the following week. With market expectations running high that the RBA will cut rates at its next meeting, a feeble reading would almost certainly fuel such bets. Having formed a floor after its recent slide, the Australian dollar appears at risk of breaking below this support as rate cut odds increase. Economic data out of [..]

Will the BoC strike a more confident tone at its May meeting? – Forex News Preview

Posted on May 27, 2019 at 1:38 pm GMT

The Bank of Canada (BoC) is widely expected to keep its policy unchanged on Wednesday at 14:00 GMT. Recent economic data and some remarks by Governor Poloz argue for a slightly more confident tone overall, which may lift the loonie. That said, simmering trade tensions and other risks will likely keep a lid on the optimism, implying that any positive reaction may be only modest. After hitting a soft patch earlier this year, the Canadian economy has shown clear [..]

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