Forex Previews

Week Ahead – Aussie and kiwi braced for dovish RBA and RBNZ meetings; UK Q1 GDP also eyed

Posted on May 3, 2019 at 12:32 pm GMT

Central bank policy meetings in Australia and New Zealand will be the main focus next week with investors anticipating a further dovish tilt. Out of all the central banks that have turned dovish this year, the Reserve Bank of New Zealand is the most likely to cut rates and analysts are predicting a move as early as next week. In terms of economic indicators, UK growth figures for the first quarter will be the most important release followed by US [..]

US Jobs report awaited for direction after Powell’s comments – Forex News Preview

Posted on May 2, 2019 at 2:18 pm GMT

The widely expected US Nonfarm payrolls report is coming out on Friday at 1230 GMT to direct markets over the path of interest rates as this week’s comments by the Fed chairman, Jerome Powell, did not convince investors that the central bank’s next move is going to be a rate cut. Following the Federal Open Market Committee (FOMC) policy meeting which left interest rates unchanged on Wednesday, Powell surprisingly claimed at his press conference that the factors behind recent inflationary weakness are “transitory” and therefore the case for a rate [..]

Bank of England to sit on hands this week – Forex News Preview

Posted on April 30, 2019 at 4:14 pm GMT

The Bank of England will announce its latest policy decision on Thursday at 1100 GMT and is certain that no policymaker will vote for a change as developments around Brexit are still in a limbo a few weeks after the EU decided to grant the UK a six-month extension to exiting from the bloc. Economic prospects that greatly depends on the nature and timing of the divorce agreement is also giving little reason to abandon the current strategy. The UK Prime Minister turned [..]

New Zealand employment to bounce back in Q1 but may fail to lift kiwi – Forex News Preview

Posted on April 30, 2019 at 2:58 pm GMT

Labour market indicators will be published in New Zealand on Wednesday at 10:45 local time (Tuesday, 22:45 GMT), in what will be the last major release before the Reserve Bank of New Zealand’s policy meeting on May 8. With rate cut expectations running high, the New Zealand dollar is vulnerable to positive surprises in the data. Jobs growth expected to rebound In the prior release, the unemployment rate had unexpectedly shot higher from 4.0% to 4.3% in Q4 2018. Analysts [..]

Fed meets as rate-cut bets mount – Forex News Preview

Posted on April 30, 2019 at 2:32 pm GMT

The Fed will announce its policy decision on Wednesday at 18:00 GMT. No action is expected, so Chair Powell’s remarks in the subsequent press conference (18:30 GMT) will likely steal the show. Inflation has cooled lately, which combined with still-elevated risks abroad, suggest that the Fed could maintain a cautious tone. While that may weigh on the dollar initially, any downside is unlikely to be massive, given how pessimistic market pricing already is. The Fed shifted to a more ‘cautious’ [..]

Week Ahead – Fed, NFP, Eurozone GDP and BoE to inject life into subdued FX markets

Posted on April 25, 2019 at 11:53 am GMT

After a lacklustre couple of weeks for foreign exchange markets, trading volumes are expected to return to somewhat more normal levels over the next seven days with plenty of risk events on the horizon. But with many European markets shut on Wednesday for Labour Day and Japan closed for the entire week, liquidity might still be in short supply. The US currency and economy will remain at the fore as the Federal Reserve holds a policy meeting and the all-important [..]

Eurozone flash GDP growth to flag a weak start to 2019 – Forex News Preview

Posted on April 25, 2019 at 11:16 am GMT

The buttered euro is expected to come under fresh volatility in the wake of preliminary Q1 GDP growth data out of the Eurozone on Tuesday at 0900 GMT. The consensus is for a very modest growth as lack of progress in political and economic issues have probably kept investors’ interest away from EU markets. Unlike other regions such as China and the US, the Eurozone seems to have started the year on a disappointing footing in the first quarter, with analysts [..]

Time for US GDP growth and core PCE inflation – Forex News Preview

Posted on April 24, 2019 at 12:04 pm GMT

The US reports preliminary GDP growth figures for the first quarter of 2019 on Friday at 1230 GMT, while at the same time on Monday, the March core Personal Consumption Expenditures (PCE) index, will move front and center to add further clues on whether an accommodative monetary policy is indeed necessary in the year ahead. While analysts predict a slower economic expansion and a softer inflation, improving data out of the country have given a good feeling for the US economy [..]

Bank of Japan expected to keep policy steady, may downgrade forecasts – Forex News Preview

Posted on April 23, 2019 at 3:44 pm GMT

The Bank of Japan will conclude its two-day policy meeting on Thursday and will be publishing its quarterly outlook report along with its decision statement. The Bank does not provide a precise time for its announcement, but they tend to be made around 0300 GMT. As the global economic slowdown continues to drag on Japanese exporters, policymakers are in a bind as after years of easy monetary policy, inflation is far below the BoJ’s 2% target and growth remains sluggish. [..]

Australian inflation to remain below RBA target, fuel rate cut speculation – Forex News Preview

Posted on April 23, 2019 at 6:35 am GMT

Australia will report inflation numbers for the first quarter on Wednesday at 0130 GMT, providing investors with a vital piece of information ahead of the Reserve Bank of Australia’s policy meeting on May 7. With rate cut odds easing slightly following some upbeat economic indicators out of China recently, a weaker-than-expected price reading on Wednesday could lead to some of these bullish bets being pared back. Hence, the Australian dollar will be sensitive to any surprises in the data. Inflation [..]

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