Forex Previews

Week Ahead – US jobs report eyed for recovery progress; Calm and steady at the RBA

Posted on August 28, 2020 at 12:07 pm GMT

As a possible fiscal cliff looms in the United States, the August nonfarm payrolls report will be a crucial test for the strength of the economic recovery, making it the highlight of a relatively busier week as summer draws to an end. Canadian employment figures are also on the agenda, while the latest PMIs out of China will be important for market sentiment. But it is the Australian dollar that could see the most crossfire out of the major currencies [..]

Canada’s GDP to slump at a record rate, but loonie has other concerns – Forex News Preview

Posted on August 27, 2020 at 1:24 pm GMT

Canada is reporting GDP figures for the second quarter on Friday at 12:30 GMT and while the country is expected to reveal its worst contraction ever, the loonie may shrug off the data and lean on the dollar for direction. Movements in oil prices could be another market mover for the Canadian currency. Worst contraction ever In the first quarter of the year, the Canadian economy shrank by 8.2% q/q annualized thanks to domestic and global Covid-19 isolation measures, but [..]

Jackson Hole: Will Powell signal move to average inflation targeting? – Forex News Preview

Posted on August 25, 2020 at 4:35 pm GMT

Speculation is mounting that Fed chief Jerome Powell will use the annual Jackson Hole conference of central bankers to announce a revamp of how monetary policy is set. The speech, scheduled for the first day of the economic symposium on Thursday at 13:10 GMT, could outline a shift by the Federal Reserve towards average inflation targeting. Powell’s potentially historic address will likely overshadow this week’s economic releases out of the United States. The July numbers for durable goods orders, and [..]

Australian Q2 data to shed light on virus slump; unlikely to curb strong aussie – Forex News Preview

Posted on August 25, 2020 at 9:58 am GMT

Australia has yet to publish its second quarter GDP reading (due in a week’s time) and there will be two precursors ahead of it: quarterly construction output is out on Wednesday at 01:30 GMT and capital expenditure will hit the markets on Thursday at the same time. The data are almost certainly expected to underscore predictions that the Australian economy entered its first recession in nearly three decades in the first half of 2020. But that may not be enough [..]

Week Ahead – Markets to stay choppy ahead of virtual Jackson Hole symposium

Posted on August 21, 2020 at 12:49 pm GMT

The Federal Reserve will be front and centre next week as traders will be hoping policymakers will provide clearer signals on future monetary stimulus than they did in the FOMC minutes when they hold a virtual gathering of their annual economic symposium. Data out of the United States will constitute the predominant data releases, and coupling that with the Fed event, there can be little doubt the US dollar will be the primary driver of the FX market in an [..]

Eurozone PMIs may point to slowing recovery; will the soaring euro care? – Forex News Preview

Posted on August 19, 2020 at 2:38 pm GMT

The flash PMI readings for August will be the sole economic highlight for the euro area this week as investors try to get a better sense of where Europe’s recovery is headed amid a spike in coronavirus cases over the summer. The data, due at 08:00 GMT on Friday, might point to the recovery losing some steam in the past couple of weeks as businesses face challenging trading conditions. However, unless the PMIs widely undershoot expectations, the euro will likely [..]

Sterling flies ahead of key PMI and retail sales data – Forex News Preview

Posted on August 18, 2020 at 4:08 pm GMT

After a historic collapse in economic output in the second quarter, the United Kingdom will likely enjoy a more cheerful set of data on Friday. Retail sales numbers for July are due at 06:00 GMT, to be followed shortly after by the IHS Markit/CIPS flash PMI readings for August at 08:30 GMT. Ahead of those releases, the July inflation prints will hit the markets at 06:00 GMT on Wednesday, though these are expected to have less of a bearing on [..]

FOMC minutes: Setting the stage for September – Forex News Preview

Posted on August 18, 2020 at 12:50 pm GMT

The minutes of the latest Fed meeting will hit the markets at 18:00 GMT Wednesday. Investors will look for any hints as to the Fed’s next move, which will probably be to strengthen the forward guidance. Clear signals that this might be announced in September could weigh on the dollar and boost stocks, albeit not much, as this is the consensus view. Overall, the dollar’s path will be decided mostly by what Congress does and how the virus picture evolves. [..]

Canadian inflation and retail sales could push loonie even higher – Forex Preview

Posted on August 18, 2020 at 12:33 pm GMT

Canada will publish its inflation data for the month of June at 1230 GMT on Wednesday before releasing retail sales figures at the same time on Friday. Given the significant rebound in the preceding month, the retail sales report could be a more important market mover among data releases for the loonie, which is expected to move in new upside paths. Has Covid-19 come under control? In Canada, the virus crisis has come somewhat under control as indicated by the latest unemployment numbers. The nation’s economy added [..]

Japan to escape GDP crash in Q2 but virus spike clouds outlook – Forex News Preview

Posted on August 14, 2020 at 12:21 pm GMT

Japan looks set to enjoy a rare feat of being at the top of the G10 growth league in the second quarter when it reports its GDP estimate on Monday (Sunday, 23:50 GMT). But the achievement will hardly be celebratory as Japan had already entered recession in Q1. Moreover, despite having initial success in containing the coronavirus outbreak, the country is now facing a second wave of infections that dwarfs the first one. Nonetheless, the data is not expected to [..]

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