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Forex News – Sterling jumps after hawkish BoE; rate hikes could come sooner

Posted on June 15, 2017 at 2:41 pm GMT

The pound jumped after the Bank of England (BoE) policy announcement today, erasing earlier losses against the dollar. The BoE was more hawkish-than-expected and the Monetary Policy Committee (MPC) vote count indicated a surprisingly tight decision. The Bank left its benchmark interest rate unchanged at a record low 0.25%. While this was widely expected, the 5 – 3 vote for a rate hike was not anticipated, suggesting the central bank was coming closer to raising rates. The result sent sterling [..]

Forex News – Upbeat Australian job report boosts aussie dollar; unemployment rate at 4-year low

Posted on June 15, 2017 at 10:51 am GMT

The Australian economy added significantly more jobs in May than forecasters predicted, spurring hopes that labor market strength will start feeding into the overall economy. Specifically, the number of jobs added to the economy reached 42,000 in May, far outstripping expectations of 10,000. This is the third month in a row that the level of hiring surprises to the upside, confirming the formation of a positive trend for the Australian labor market and consequently the economy overall. Last month’s figure [..]

Forex News – New Zealand GDP surprises to the downside; Kiwi falls

Posted on June 15, 2017 at 7:39 am GMT

The New Zealand GDP figures released today showed the country’s economy expanding at a slower pace than projected by analysts during the first quarter of the year. The New Zealand dollar fell relative to its US counterpart as the data hit the markets. Regarding the actual figures, first quarter GDP grew by 0.5% on a quarterly basis, falling short of expectations for 0.7% growth but slightly above the respective growth rate during the fourth quarter of 2016, which stood at [..]

Forex News – Fed raises rates, expects one more hike, outlines balance sheet reduction plan; dollar off lows

Posted on June 14, 2017 at 9:08 pm GMT

The US Federal Reserve stuck to its existing rate hike path by raising the federal funds rate by 25 basis points at the end of its two-day monetary policy meeting on Wednesday. The latest move – the second this year – takes the target range for the fed funds rate to 1.00-1.25%. With today’s tightening already fully priced in by the markets, the focus was on the future direction of monetary policy as the Federal Open Market Committee publishes its [..]

Forex News – Dollar falls on inflation, retail sales miss; Fed meeting in focus

Posted on June 14, 2017 at 2:49 pm GMT

US inflation data for the month of May showed consumer prices unexpectedly falling on a monthly basis, marking the second drop in three months. Monthly retail sales surprised to the downside as well, marking a contraction during the month. Looking at the actual inflation data, the figure for monthly CPI showed a 0.1% decline in May, contrasting analysts’ forecasts who projected it to remain flat and the 0.2% rise from April. On a yearly basis, inflation rose by 1.9%, recording [..]

Forex News – UK inflation rises to near 4-year high; sterling volatile

Posted on June 13, 2017 at 11:30 am GMT

UK Consumer Price Index (CPI) data for the month of May showed annual inflation climbing to a near four-year high. Sterling experienced volatility as the data hit the markets. Turning to the numbers, the annual inflation rate for May stood at 2.9%, above expectations and April’s respective rate, both at 2.7%. On a monthly basis, inflation rose 0.3% in May, beating expectations of a 0.2% rise but coming below April’s 0.5%. The core measure of inflation, which excludes volatile components [..]

Forex News – Macron party poised for landslide; potential positive momentum for the euro

Posted on June 12, 2017 at 8:24 am GMT

French President Emmanuel Macron’s party, La République en Marche, set the foundations for an overwhelming majority in the French parliament as election results show that nearly a third of voters supported candidates running for Macron’s party, as well as its ally Modem, another centrist party. Macron’s victory could translate into nearly 70% or more than 400 seats of the total 577 in the National Assembly, the lower house of the French Parliament, after the completion of the second round of [..]

Week Ahead – Key central banks in the spotlight – FOMC, Bank of England, Bank of Japan policy meetings

Posted on June 9, 2017 at 3:19 pm GMT

Following the UK elections, the focus next week will continue to be on Britain as the outcome of the vote could have important ramifications for Brexit negotiations. Key events in the coming week revolve around central banks as the Bank of England, Federal Reserve and Bank of Japan all have policy meetings next week. Bank of England The Bank of England is widely expected to leave interest rates at 0.25% and it is considered unlikely that the Bank will cut [..]

Forex News – British elections: Pound falls sharply as hung parliament becomes a reality

Posted on June 9, 2017 at 8:31 am GMT

In yesterday’s UK general elections, the Conservative party did not come out as strong as initially thought earning a weaker representation in the House of Commons while Jeremy Corbyn, the Labour party leader who was credited for running an energetic campaign, managed to beat expectations securing enhanced parliamentary representation for his party. Projections now as votes are still being counted are that the Conservatives will be the largest party with 318 seats, eight short of a majority – the total [..]

Forex News – ECB removes rate-cut guidance but euro softer on only baby steps

Posted on June 8, 2017 at 2:50 pm GMT

The European Central Bank announced its decision today to hold monetary policy unchanged at the end of its two-day meeting in Tallinn, Estonia. As expected, the central bank kept its refinancing, marginal lending facility and deposit facility rates unchanged at 0.00%, 0.25% and -0.40% respectively. Asset purchases were also held steady at €60 billion a month until the end of the year. However, in another baby step towards eventually starting the process of withdrawing monetary stimulus, the ECB adjusted its [..]

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