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Forex news – Sterling finds support on stronger-than-expected U.K. jobs report

Posted on July 12, 2017 at 1:32 pm GMT

Sterling managed to reverse its losses made earlier during the Asian session after a batch of U.K jobs and wage data came to light on Wednesday, surprising to the upside. The question arising now is whether the Bank of England’s policymakers will synchronize their opinions on future monetary policy and therefore raise interest rates after almost a year of no change. In contrast to disappointing manufacturing, construction and industrial figures in May, jobs data out of the U.K. today came [..]

Week Ahead – Bank of Canada could hike rates; US data and Yellen testimony eyed

Posted on July 7, 2017 at 3:31 pm GMT

The Bank of Canada could become the first major central bank other than the Federal Reserve to raise rates next week for the first time since at least 2015. The only other important central bank event next week is Fed Chair Janet Yellen’s testimony in Congress. In terms of data, the US will dominate again with key releases that will include CPI and retail sales figures. China will also publish inflation data, while in the UK, the labour market report [..]

Forex News – Dollar gains on NFP beat after initial fall due to weak wage growth

Posted on July 7, 2017 at 3:06 pm GMT

Today’s much awaited US non-farm payrolls report for the month of June surprised to the upside as the number of jobs added to the economy comfortably beat expectations. However, the wage growth component of the report fell short of projections, pushing the dollar lower upon immediate release of the data. The greenback has since managed to come back from the initial fall in a sign the immediate movement was merely a knee-jerk reaction by forex market participants. Delving into the [..]

Forex News – Dollar steady after FOMC minutes leave a hawkish message amid signs of split

Posted on July 6, 2017 at 10:33 am GMT

Late on Wednesday, the Federal Reserve (Fed) published the minutes of its meeting held in June 13-14, providing the reasoning behind its decision to raise the fed funds rate for the second time this year to a target range of 1.00-1.25% and its intention to reduce the size of the balance sheet. However, the release of the minutes did not provide a strong support to the dollar, with major currency pairs remaining flat in the forex markets. The Fed minutes revealed that bank officials are in [..]

Forex news – Aussie falls as RBA maintains benchmark rate at record low

Posted on July 4, 2017 at 11:04 am GMT

As expected by market participants, the Reserve Bank of Australia (RBA) today decided to keep rates unchanged at the historical low level of 1.5%. This comes at a time when major central banks around the world are either normalizing rates or are signalling that they’re getting closer to start tightening their respective monetary policies. The RBA’s decision followed the release of the Australian retail sales data, which were published a few hours earlier. The figures showed retail sales growing by [..]

Forex news – Yen gives up gains from strong Tankan survey; aussie shrugs off positive Chinese data

Posted on July 3, 2017 at 1:56 pm GMT

The yen opened stronger on Monday after the Japanese prime minister Shinzo Abe’s Democratic party faced a slump in support in Tokyo’s assembly elections on Sunday, losing its majority against the rival Tomin party. Beyond that, improvements in the Bank of Japan’s Tankan survey provided a modest boost to the currency The Australian dollar recorded a downtrend following the disappointing building approvals’ figures, despite better-than-expected Caixin-Markit manufacturing purchasing managers index (PMI) out of China. However, the yen soon reversed its [..]

Forex News – Japanese core inflation takes a modest step; Yen edges higher

Posted on June 30, 2017 at 2:00 pm GMT

Two weeks ago, the Bank of Japan (BOJ) decided to maintain its ultra-easy monetary policy, holding interest rates unchanged at a negative 0.1%, hoping that future improvements in country’s economic conditions will accelerate inflation to its still distant 2% target. Today, the Japanese yen extended its gains against the greenback for the third day, with the dollar/yen trading higher by 0.12% at 112, following the release of a batch of mixed data out of Japan. After four years of monetary [..]

Forex News – Euro’s rally becomes volatile as eurozone inflation slows on lower energy

Posted on June 30, 2017 at 12:57 pm GMT

Consumer prices in the eurozone tempered in June, slowing down for the second month in a row. However, flash core inflation ticked higher providing some relief for the European Central Bank. The European Commission’s statistics bureau confirmed that the annual CPI in the euro area slowed to 1.3% in June, based on the preliminary data. While the number is below May’s 1.4%, it still came in above the expectations of 1.2%. The markets had their inflation expectations at the a [..]

Week Ahead – US and Canadian jobs data eyed amid rate hike talk; RBA and UK PMIs also in focus

Posted on June 30, 2017 at 10:38 am GMT

Employment reports out of the United States and Canada will be scrutinized as the Fed eyes a third rate hike and the Bank of Canada moves closer to a tightening cycle. Central bank meetings will include the Reserve Bank of Australia and the Riksbank, while PMI data out of the United Kingdom, the Eurozone, China, Canada, and the United States will also be watched. RBA set to maintain neutral stance The Reserve Bank of Australia is expected to hold rates [..]

Forex News – Positive Chinese manufacturing PMI provides a boost to the yuan

Posted on June 30, 2017 at 10:10 am GMT

Chinese official manufacturing PMI numbers for the month of June positively surprised today, in a sign that the world’s second largest economy remains resilient against threats on growth, such as high debt levels in the economy. Delving into the numbers, the June manufacturing PMI came in at 51.7, beating expectations for a reading of 51.0 and exceeding May’s 51.2. The official PMI figure for the services sector was released at 54.9, comfortably above the 50 threshold that separates expansion from [..]

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