Forex Previews

Forex News – Producer price inflation in China slows down as iron prices fall

Posted on May 10, 2017 at 2:54 pm GMT

Economic data out of China on Wednesday pointed to a slowing down in momentum in the world’s second largest economy. Producer price inflation cooled for a second straight month in April as iron ore and coal prices tumbled further. Surging supplies of steel are creating concerns that domestic demand will not be strong enough to support raw materials prices. Producer prices rose 6.4% year-on-year in April versus a 7.6% increase in March and slightly below the forecast of 6.9%. It was [..]

Forex News – Euro retreats from French election highs as investors remain wary of ECB policy

Posted on May 8, 2017 at 11:08 am GMT

The expected win of Emmanuel Macron in France’s presidential election on Sunday drove the euro to a 6-month high earlier today as French voters dramatically rejected Marine Le Pen’s far-right movement. With 99% of the votes counted, Macron had just over 66% of the votes, giving him a far bigger margin over his rival than what the polls were projecting in the days ahead of polling day. The result is a boost for the European project given Macron’s pro-EU stance [..]

Week Ahead – Bank of England meeting and US inflation numbers will be main focus

Posted on May 5, 2017 at 2:42 pm GMT

The main focus of the markets in the upcoming week will be on the Bank of England policy meeting and on US data releases which include inflation and retail sales. Bank of England The Bank of England holds its monthly policy meeting on Thursday, and so all eyes will be on the Monetary Policy Committee’s decision on interest rates and QE. At the same time, the BOE will release its latest quarterly Inflation Report, containing new projections for economic growth and [..]

Forex News – UK services PMI builds on momentum from manufacturing and construction sectors; sterling fails to post gains

Posted on May 4, 2017 at 10:31 am GMT

The April PMI number for the services sector, by far the largest contributor to UK economic output, was released today. The number exceeded analysts’ estimates and came in at a four-month high. In addition, today’s figure builds on earlier momentum from the respective numbers for the manufacturing and construction sectors, which also surprised to the upside, and points to a picking up in economic activity during the second quarter of the year after the slowdown in the preceding quarter. Taking [..]

Forex New – Dollar rises after hawkish FOMC; rates unchanged as expected

Posted on May 3, 2017 at 7:46 pm GMT

The Federal Reserve did not surprise the markets today and kept monetary policy unchanged. By a unanimous decision, the FOMC voted to leave the target federal funds rate in a range of 0.75% to 1%. In a statement released at the end of a two-day meeting, the Fed acknowledged that the recent soft US economic data was transitory, and they maintained a wait and see approach. This indicated that the US central bank was not too concerned with the disappointing [..]

Forex News – New Zealand sees jobs growth in Q1; kiwi rallies only briefly after data

Posted on May 3, 2017 at 9:49 am GMT

New Zealand released strong labour market data on Wednesday, which resulted in the kiwi rallying against the greenback after the news. A total of 29,000 new jobs were created in the first quarter of this year, which represented a 1.2% increase in Q1 from Q4 2016. The number beat forecasts for a gain of 0.8% on the quarter. This resulted in the jobless rate slipping from the prior quarter’s 5.2% to 4.9% in the first three months of this year. [..]

Forex News – RBA holds interest rate unchanged at historic low of 1.5%

Posted on May 2, 2017 at 10:48 am GMT

The Reserve Bank of Australia left its cash rate unchanged at a historic low of 1.5% during its policy meeting on Tuesday. This was widely expected by the markets and the steady interest rate policy is consistent with sustainable economic growth and with meeting the central bank’s inflation target over time. The RBA is aiming to boost inflation while maintaining financial stability amid record household debt. The official cash rate has been on hold for nine months since it was [..]

Week Ahead – Non-farm payrolls, FOMC, PMI data in focus; EU Summit prepares for Brexit

Posted on April 28, 2017 at 2:24 pm GMT

The main focus in the coming week will be on the United States, which releases important jobs and PMI data, while the Federal Reserve policy meeting is also scheduled. Monday starts off quietly since most markets will be closed in Europe, the UK and Asia for the May Day holiday. US non-farm payrolls, ISM and FOMC The April non-farm payrolls report due at the end of the week will play a key role in influencing market expectations about the [..]

Forex News – UK GDP growth slows more than expected in Q1; pound shrugs off data

Posted on April 28, 2017 at 10:49 am GMT

The UK economy slowed more-than-expected during the first quarter of the year as the dominant services sector posted its weakest growth in two years. GDP expanded by 0.3% quarter-on-quarter in the first three months of the year, slightly weaker than forecasts of 0.4% and sharply down from the prior quarter’s 0.7% rate. On an annual basis, growth improved from 1.9% in the fourth quarter to 2.1% in the first quarter. Expectations were for a year-on-year figure of 2.2%. Nevertheless, that [..]

Forex News – Trump tax plan fails to lift markets; dollar pulls back

Posted on April 27, 2017 at 1:33 pm GMT

The US Treasury Secretary, Steven Mnuchin, yesterday announced the much-anticipated details on one of President Trump’s main election campaign pledges to cut taxes for businesses and individuals. Dubbed by Mnuchin as “one of the biggest tax cuts in history”, the tax plan provided few surprises as much of the details had already been circulating in the media in the prior days. The main highlights of the tax plan are simplifying income tax by cutting the number of tax brackets from [..]

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