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Forex News – Eurozone business sentiment rises further in May; Euro hits fresh 6-month high

Posted on May 23, 2017 at 2:09 pm GMT

Economic activity in the Eurozone continued to expand at the fastest pace in 6 years in May with little sign that the current momentum is waning. IHS Markit’s composite PMI for the Eurozone was unchanged at 56.8 in May’s flash reading, beating expectations that it would drop to 56.6. Output was led higher by the manufacturing sector, which saw activity rise at the quickest rate in just over six years. The flash manufacturing PMI increased to 57.0 in May from [..]

Forex News – UK Conservatives’ lead halves in polls, sending sterling below $1.30

Posted on May 22, 2017 at 12:52 pm GMT

The ruling Conservative party in the UK is facing a backlash from both voters and party members following the inclusion in the party’s election manifesto of controversial changes to how social care would be funded for the elderly. The unpopularity of the policy was evident in the latest opinion polls from the weekend which pointed to a significant drop in support for Prime Minister Theresa May’s party. One poll showed the Conservatives slipped 5 points to 43%, while the main [..]

Week Ahead – Eurozone PMIs, US and UK GDP, and Japanese inflation to be main highlights; OPEC and G7 meetings also eyed

Posted on May 19, 2017 at 3:25 pm GMT

The coming week is looking to be a relatively quiet one with only a handful of major data releases to keep traders occupied. Inflation data out of Japan and the flash PMI readings for the Eurozone will be the main highlights, while the second estimates of first quarter growth for the UK and the US will be watched too. In terms of central banks, the Bank of Canada meets for its latest policy decision but FOMC minutes from the Fed [..]

Forex News – Sterling breaks $1.30 after strong UK retail sales data

Posted on May 18, 2017 at 10:39 am GMT

Sterling rallied strongly against the dollar after a strong UK retail sales report today, which showed the biggest gain in sales since January 2016. Cable jumped above the key $1.30 level for the first time since September 2016 to hit $1.3046, while the euro fell against the pound to 85.23 pence. UK retail sales for April beat expectations to rise 2.3% month-on-month. This was more than double the 1.0% forecast and reversed the 1.4% decline in March when sales recorded [..]

Forex News – Japan’s economy in longest growth run in more than a decade

Posted on May 18, 2017 at 9:57 am GMT

Japan’s economy grew more than expected in the first three months of the year, expanding by 0.5% quarter-on-quarter and beating forecasts of 0.4%. On an annualized basis, growth was 2.2% – the highest in a year and above expectations of 1.7%. There was also a small upward revision to the prior quarter’s number from an annualized rate of 1.2% to 1.4%. The positive figure means Japan’s GDP has now grown for five consecutive quarters – marking the longest stretch of [..]

Forex News – Eurozone inflation rebounds in April, gives added lift to euro

Posted on May 17, 2017 at 2:37 pm GMT

Incoming data out of the Eurozone continue to surprise to the upside, confirming that the economic recovery is strengthening. Consumer price inflation (CPI) data released today by Eurostat showed final readings confirmed earlier estimates of both headline inflation and core inflation. Annual CPI in the euro area rebounded to 1.9% in April 2017, up from 1.5% in March. The number is close to the European Central Bank’s (ECB) target of 2%. Factors driving inflation higher were fuels for transport, package [..]

Forex News – UK inflation rises more than expected but pound pulls back from highs

Posted on May 16, 2017 at 1:01 pm GMT

Consumer prices in the UK rose more strongly than expected in April as higher air fares pushed the headline inflation to the highest since September 2013. Annual CPI rose from 2.3% in March to 2.7% in April, while core CPI, jumped from 1.8% to 2.4% – the highest since March 2013. Analysts were expecting CPI to increase to 2.6% and for core inflation to rise to 2.2%. Apart from the higher air fares (which was mainly down to the timing [..]

Week Ahead – Inflation and retail sales data to dominate uneventful week; Japan GDP eyed

Posted on May 12, 2017 at 3:06 pm GMT

Inflation data out of the UK, Canada and the Eurozone will be the market’s main focus next week, as will Japanese GDP figures for the first quarter. Important indicators from China will also attract attention, while Australian employment numbers will be on investor’s watch list too. Chinese economic momentum seen easing in April Data out of China will be the highlight at the start of the week as retail sales, industrial output and urban investment figures are released on Monday. [..]

Forex News – Pound slips below $1.29 as Bank of England warns of a slowdown

Posted on May 11, 2017 at 3:04 pm GMT

The Bank of England signalled it may have to raise interest rates sooner than what is being anticipated by the markets, as it kept monetary policy unchanged at the end of its two-day meeting today. Monetary policy committee (MPC) members voted 7-1 to hold rates at a record low of 0.25%, in a widely expected move. Outgoing MPC member, Kristin Forbes, was the sole dissenter for the second meeting in a row. There had been some speculation by market participants [..]

Forex News – New Zealand dollar falls on RBNZ neutral rate outlook and expectations of low rates for longer

Posted on May 11, 2017 at 9:47 am GMT

New Zealand’s central bank announced it held its overnight cash rate at a record low 1.75% at its policy meeting on Thursday. This was widely expected by the markets but what was surprising was the RBNZ’s decision to maintain a neutral outlook on inflation. The Bank does not see a rise in interest rates until 2019. The kiwi fell to an 11-month low against the greenback on the market’s disappointment that the RBNZ did not shift its stance on inflation. [..]

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