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Forex News – Dollar reverses losses from NFP miss on signs of tightening labour market

Posted on April 7, 2017 at 3:01 pm GMT

The March non-farms payrolls report rounded up a roller-coaster week for the US dollar as the greenback struggled to find direction in a week weighed by risk aversion and geopolitical concerns. The latest jobs report out of the US today failed to provide the dollar bulls with fresh impetus for a renewed upwards push as the headline figure widely missed analysts’ expectations. Non-farm payrolls rose by just 98k in March, well below forecasts of a gain of 180k. This was [..]

Week Ahead – Inflation data out of US, UK and China expected; Yellen speech eyed

Posted on April 7, 2017 at 2:35 pm GMT

A stream of key economic data will be released in the coming week, with focus on the UK and the US, as both release inflation numbers. UK jobs and inflation data All eyes will also be on the UK labour market report, and notably on average earnings figures, for any sign that the higher inflation may be feeding through to employee pay. The Bank of England will likely closely watch the data, as softer wage growth would weaken the case [..]

Forex News – UK industrial and trade data heightens slowdown fears; pound slips

Posted on April 7, 2017 at 10:49 am GMT

Economic data out of Britain today heightened fears about a possible slowdown in UK growth, just as Brexit negotiations officially get underway. After a strong surge in industrial production at the end of 2016, output fell for the second consecutive month in February, raising expectations of weak first quarter growth. Industrial output fell 0.7% month-on-month in February, missing estimates of a 0.2% increase, while the annual rate eased from an upwardly revised 3.3% in January to 2.8% in February. The [..]

Forex News – Turkey’s economic outlook depends on referendum outcome

Posted on April 6, 2017 at 2:51 pm GMT

The Turkish lira has been depreciating sharply since the end of last year and it hit a record low against the US dollar in January. The deterioration in economic growth, rising inflation and the April 16 referendum, complicate the economic outlook for Turkey. As a result, the country has lost its investment-grade sovereign rating after all three major ratings agencies – Moody’s, Fitch, Standard and Poor’s – cut Turkey’s credit rating to junk. A failed coup in July last year pushed [..]

Forex News – Draghi drives euro to fresh 3-week low as he reiterates current guidance

Posted on April 6, 2017 at 10:42 am GMT

The euro tumbled sharply today after Mario Draghi, President of the European Central Bank, dismissed speculation that the central bank would soon begin to tighten policy. Speaking at a conference in Frankfurt, Draghi sought to play down talk that the ECB could begin reducing its monthly asset purchases later this year or start raising interest rates before its bond buying program has ended. Growing evidence that the Eurozone economy is finally turning a corner as growth picks up a gear [..]

Forex News – Sterling jumps after positive services PMI; UK economic outlook not so upbeat

Posted on April 5, 2017 at 10:57 am GMT

The UK services PMI for the month of March was released today beating estimates and coming at a three-month high. The news was welcomed, especially after manufacturing and construction PMIs fell short of expectations earlier in the week. The services sector is the prime contributor to UK Gross Domestic Product. Looking at the actual figure for Markit/CIPS services PMI, that stood at 55.0 as opposed to the 53.5 expected by analysts. The number was also an improvement over February’s 53.3. [..]

Forex News – Dovish RBA sends aussie lower

Posted on April 4, 2017 at 2:21 pm GMT

The Australian dollar took a tumble after the Reserve Bank of Australia Governor Philip Lowe made some dovish comments on the domestic labour market and over-heated housing sector. Lowe’s comments came just hours after an RBA policy meeting where the official cash rate was kept at a record low 1.5%. This was the eighth straight month that interest rates were not changed since the last 25 basis-point cut in August 2016. The RBA’s stance appeared to be neutral but the [..]

Forex News – Australian retail sales and housing data weigh on aussie as RBA expected to hold rates

Posted on April 3, 2017 at 10:22 am GMT

Australia released key data on the country’s retail sector, the manufacturing sector and the housing sector, which included building approvals and home prices. The market’s focus was mainly on the retail sales number, which unexpectedly fell and pressured the aussie lower against the dollar to dip briefly below the key $0.7600 level soon after the data was released. Despite a weak retail sales sector, the AIG manufacturing index indicated robust growth in the sector, coming in at 57.5 in March, [..]

Week Ahead – US NFP, RBA meeting and UK PMIs among highlights in busy data week

Posted on March 31, 2017 at 3:03 pm GMT

It will be a busy week for economic data in the next seven days, which will be dominated by PMI surveys and trade figures. The highlight though will come from the latest non-farm payrolls numbers out of the United States, while the Reserve Bank of Australia’s policy meeting and the Bank of Japan’s Tankan survey will also be watched. Japanese business outlook expected to improve further The Bank of Japan will publish its quarterly Tankan survey on Monday and the [..]

Forex News – Euro falls on weaker-than-expected inflation data; ECB gains some respite

Posted on March 31, 2017 at 12:01 pm GMT

The euro declined today relative to other major currencies after flash inflation data for the month of March came in lower than expected. The negative surprise in German and Spanish inflation figures for March released yesterday hinted to today’s numbers. Delving into the numbers, the flash estimate for annual inflation was at 1.5% with forecasts projecting a 1.8% annual figure for March. February’s annual inflation number stood at 2.0%, marking a four-year high at the time. The fall in inflation [..]

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