Forex Previews

Week Ahead – Brexit crunch time as MPs to vote on May’s deal; inflation data to dominate

Posted on January 11, 2019 at 12:30 pm GMT

Brexit fatigue looks set to reach a climax next week as UK lawmakers will finally get their say on Theresa May’s deal. But with little chance of the deal passing through Parliament, stormy days lie ahead for sterling. On the data front, inflation will be the dominant theme, while the US housing market will also come under the spotlight, assuming the government shutdown doesn’t cause a delay to the scheduled releases. Chinese trade figures eyed China will publish its latest [..]

UK GDP, industrial output data to attract less attention as Brexit deal vote looms – Forex News Preview

Posted on January 10, 2019 at 9:57 am GMT

The UK economy will be in focus on Friday as November data on monthly GDP, industrial output and trade are due at 09:30 GMT. But with the crucial Parliamentary vote on Theresa May’s much-criticised Brexit deal coming up just a few days later, the normally closely-watched indicators may fail to generate notable reaction in forex markets. After notching up growth of 0.6% quarter-on-quarter in the September quarter, the British economy is expected to have cooled in the final three months [..]

ECB minutes next in line as rate differentials keep euro resilient – Forex News Preview

Posted on January 9, 2019 at 3:14 pm GMT

The minutes of the latest ECB meeting, where policymakers officially decided to end QE, are due out on Thursday at 1230 GMT. Investors will look at how officials see the Eurozone’s growth prospects, and whether they are even more worried than President Draghi has let on. Any signs the Bank is growing more cautious may weigh on the euro, though note that the currency has remained resilient in the face of bad news recently, so any downside may be fairly [..]

FOMC minutes to highlight a busy week for the dollar – Forex News Preview

Posted on January 8, 2019 at 3:56 pm GMT

The US economic calendar is packed with significant events this week, with the latest FOMC minutes hitting the markets on Wednesday, at 1900 GMT. Then on Thursday, a slew of Fed speakers including Chair Powell and Vice Chair Clarida will deliver remarks. Investors will look for clues as to whether a pause in rate hikes is indeed in order, amid growing fears a recession may be in sight. Fed Chairman Powell softened his tone on future rate hikes last week, [..]

Bank of Canada to put rate hikes aside for now – Forex News Preview

Posted on January 8, 2019 at 3:20 pm GMT

The loonie recovered almost 2.0% of its lost value last week, registering its largest gain against the dollar in four months but the currency is waiting another test this week as the Bank of Canada is scheduled to set monetary policy on Wednesday at 1500 GMT. While interest rates are not expected to change, policymakers may use a more dovish tone amid heightened fears of a slowing global economy. The economic strength stemming from a tightening job market and higher [..]

Eurozone economic sentiment index to mark a negative year – Forex News Preview

Posted on January 7, 2019 at 10:59 am GMT

The European Commission is publishing its final Business and Consumer Survey for 2018 on Tuesday at 1000 GMT. While the numbers stood at 18-year highs at the end 2017, creating euphoria that the uptrend would continue in the near future, the confidence indicators moved to the downside during 2018 and are now forecasted to finish the year even lower. The economic sentiment index which measures confidence in five areas (industrials, services, consumers, construction, retail sales) is projected to drop by 0.7 points to [..]

Week Ahead – Factory data to remain in focus; BoC to start off 2019 central bank meetings

Posted on January 4, 2019 at 2:28 pm GMT

Industrial production out of Germany, the UK and France will dominate the economic calendar next week, keeping investors’ attention firmly on the growth outlook for 2019. The Bank of Canada will be the first of the major central banks to hold a policy meeting this year, while the highlight in the US will be the ISM non-manufacturing PMI and speeches from Fed policymakers. However, with market moves being mostly driven by jitters about the growth outlook at the moment, economic [..]

Eurozone inflation not going anywhere; could upset ECB plans – Forex News Preview

Posted on January 3, 2019 at 4:00 pm GMT

Eurostat will publish its preliminary estimates of Eurozone inflation for December on Friday at 10:00 GMT. The figures are expected to confirm that the European Central Bank made little progress in lifting underling inflation during 2018, putting into question its plans to begin raising interest rates in the final quarter of 2019. The harmonised consumer price index (CPI) for the euro area is expected to have risen by an annual rate of 1.8% in December. Although this is marginally below [..]

UK services PMI expected to nudge up but unlikely to lift battered pound – Forex News Preview

Posted on January 3, 2019 at 2:13 pm GMT

The Markit/CIPS services PMI for the UK will be watched on Friday at 09:30 GMT for evidence that the dominant sector of the British economy remained in expansionary mode amid the increasing strain of the Brexit uncertainty. However, without an end to the Brexit impasse at Westminster, sterling will struggle to find much upside momentum even if the data doesn’t disappoint. The past week has already seen the release of the manufacturing and construction PMIs for December, both of which [..]

Chinese manufacturing PMIs to spread more gloom at year-end – Forex News Preview

Posted on December 28, 2018 at 2:20 pm GMT

PMI gauges out of China will be one of the few highlights in a light economic calendar next week. The NBS manufacturing PMI is released first on Monday at 01:00 GMT, with the Caixin/IHS Markit manufacturing PMI following on Wednesday at 01:45 GMT. Expectations aren’t high for either indicators of factory activity as China’s economy continues to lose steam from structural reforms such as deleveraging as well as of course the trade war with the United States. The official NBS [..]

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