Forex Previews

Week Ahead – FOMC meeting and Q2 GDP data in focus; Eurozone PMIs also eyed

Posted on July 21, 2017 at 3:50 pm GMT

The Federal Reserve meets next week for a scheduled policy meeting but with no change in rates expected, the focus will likely fall on the balance sheet reduction plan. Data-wise, second quarter GDP estimates will be watched for France, the United Kingdom and the United States. Japanese and Australian inflation data will also be important, while flash PMIs for the Eurozone and the US should give the first glimpse on economic activity in July. Eurozone PMIs Starting the week on [..]

Forex News – ECB stands pat; dovish Draghi fails to dent bullish euro

Posted on July 20, 2017 at 3:42 pm GMT

The European Central Bank maintained its highly accommodative monetary policy stance at the end of its two-day meeting today, confounding expectations that it would take another baby step towards exiting from its stimulus program. As widely expected, the ECB held its key rates and pace of asset purchases unchanged. However, following the small tweaks to the forward guidance seen at previous meetings this year, many analysts were anticipating the ECB to make further modifications to its statement by dropping its [..]

Forex News – Aussie touches a fresh 2-year high after full-time jobs make a strong comeback

Posted on July 20, 2017 at 1:23 pm GMT

In the middle of the Asian trading, the release of the Australian labour data drove the aussie to a fresh two-year high after the figures highlighted a stronger labour market. This, in turn, opened the way for a potential rate hike sooner than projected. On early Thursday, the Australian Bureau of Statistics released employment data for the month of June. According to the numbers, the unemployment rate was in line with expectations, holding steady at May’s reading of 5.6% (year-on-year), [..]

Forex News – BoJ maintains loose policy stance; delays target date to reach 2% inflation

Posted on July 20, 2017 at 11:45 am GMT

Contrasting other major central banks which have already started normalizing their respective policies (with the latest one being the Bank of Canada) or are communicating readiness to do so, the Bank of Japan decided to keep its ultra-loose monetary policy in place as it completed today’s meeting. In addition, the Bank pushed forward the timing it anticipates to reach its annual inflation target. This is the sixth time it has done so. As expected, the BoJ maintained the 0.1% interest [..]

Forex News – UK inflation slows in June; sterling takes a hit on falling rate rise prospects

Posted on July 18, 2017 at 11:14 am GMT

UK CPI data for the month of June showed inflation slowing during the month. The decline in annual inflation marks the first slowdown since October of last year and led sterling to record losses relative to other major currencies. Market participants interpreted the figures as easing pressure on the Bank of England to raise rates as it convenes to set monetary policy in the beginning of August. Turning to the actual numbers, the annual inflation rate stood at 2.6% in [..]

Forex News- Kiwi tumbles as inflation in New Zealand comes weaker than forecast

Posted on July 18, 2017 at 9:43 am GMT

After a robust pace in the first quarter of the year, inflation in New Zealand lost steam in the second quarter, rising less than expected. Since the newly released data indicated that consumer prices are not going to pick up soon, the Reserve Bank of New Zealand will be in no rush to raise interest rates in the short-term. Meanwhile, the kiwi fell below the $0.7300 key level in the Asian session following the CPI figures but managed to recover [..]

Forex News- Aussie stands tall after Chinese GDP growth surpasses expectations

Posted on July 17, 2017 at 12:36 pm GMT

China, the world’s second largest economy and a driver of the emerging markets, has overperformed in terms of growth in the second quarter of the year, providing relief to policymakers who are currently engaged in efforts to limit financial risks from soaring debt levels and a brewing property bubble. Following the statistics, the Australian dollar bounced higher, reaching a more than one-year high. According to the National Bureau of Statistics of China, the Chinese economy grew at 6.9% year-on-year in [..]

Forex News – US CPI and retail sales data miss knock the dollar down

Posted on July 14, 2017 at 4:48 pm GMT

The dollar plunged immediately after today’s widely expected data on US CPI and retail sales disappointed market watchers who, among others, were looking for evidence on inflationary pressures that would support another rate hike by the Federal Reserve during the current year. Instead, the figures added to doubts about whether Fed policymakers will proceed with an additional rate hike in 2017. The negative momentum following Fed Chair Janet Yellen’s dovish remarks in her two-day testimony to Congress deepened today. Following [..]

Week Ahead – ECB and BOJ meet as policies set to diverge; China eyes slower growth

Posted on July 14, 2017 at 4:03 pm GMT

The European Central Bank and the Bank of Japan policy meetings next week will likely steal investors’ attention as one prepares the ground for tighter policy while the other looks in no hurry to alter course. It will also be an important week for data as China releases first quarter GDP growth figures and inflation numbers come into focus in Canada, New Zealand and the UK. Aussie jobs and New Zealand inflation data to be watched The Australian and New [..]

Forex News – Bank of Canada raises rates by 0.25%; Loonie jumps to 11-month high

Posted on July 12, 2017 at 3:36 pm GMT

The Bank of Canada delivered its first rate increase in seven years today, raising its overnight rate by 25bps to 0.75% following its latest monetary policy meeting. The expected move is the first increase in Canadian borrowing costs since 2010 and the first change since 2015 when the BoC cut rates to cushion the economy from the collapse in oil prices. With oil prices having rebounded from their 2016 lows and production from the Canadian oil sands having recovered from [..]

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