Forex Previews

Forex News – Fed raises rates by 0.25%; Dollar slides on not-so-hawkish outlook

Posted on March 15, 2017 at 8:59 pm GMT

The Federal Reserve in the United States raised borrowing costs for the third time since after the financial crisis today at the end of its two-day monetary policy meeting. The Federal Open Market Committee (FOMC) decided to increase the federal funds rate by 25 basis points to a target range of 0.75-1.00%. The hike was the first for 2017 and was only flagged by Fed Chair Janet Yellen as recently as two weeks ago. In the announcement statement, the FOMC [..]

Forex News – US inflation and retail sales data likely to keep Fed rate hike view

Posted on March 15, 2017 at 2:49 pm GMT

Key US economic data on inflation and retail sales were released today, ahead of the highly anticipated Federal Reserve policy decision. US consumer prices accelerated by the most in five years on a year-on-year basis but rose at a slower pace on a monthly basis. Retail sales rose at a slower pace. Annual inflation rose 2.7% year-on-year in February, in line with economists’ forecasts and up from 2.5% in January. However, monthly CPI only edged up 0.1% month-on-month in February, [..]

Forex News – Dutch elections first key test for European politics and the euro

Posted on March 13, 2017 at 4:11 pm GMT

The upcoming parliamentary election in the Netherlands is at the forefront of investors’ minds this week as the event will be the first key test for European politics following last year’s shock outcomes of the Brexit referendum and the US election. The Dutch will go to the polls on March 15 to elect a new House of Representatives. The vote could set the trend for the other two key elections in Europe this year – the French presidential election in [..]

Week Ahead – Fed expected to raise rates, but BoJ, BoE to hold fire

Posted on March 10, 2017 at 4:31 pm GMT

With a number of central bank meetings lined up next week, the US Federal Reserve is the only one that’s expected to make a move. Central bank meetings in Japan, Norway, Switzerland and the UK may end up being a non-event as all eyes will be on the FOMC’s updated rate projections. The US will also dominate in terms of data as inflation and retail sales numbers are due to be published. Bank of Japan to stand still as further [..]

Forex News – ECB leaves policy unchanged but euro up on less dovish Draghi

Posted on March 9, 2017 at 4:36 pm GMT

The European Central Bank kept its key interest rates and the size of its bond purchases unchanged today following its March policy meeting. Although the decision was widely expected, what was more keenly awaited by the markets was whether or not the ECB would change its guidance on future policy. The central bank initially disappointed those analysts who had been expecting it to tone down its dovish outlook as the announcement statement contained little change in the language to previous [..]

Forex News – China records its first trade deficit in 3 years on unexpectedly strong imports

Posted on March 8, 2017 at 4:11 pm GMT

The world’s second largest economy posted its first monthly trade deficit in three years in February as imports soared to almost double the analysts’ expectations from a year earlier. Exports fell, greatly contrasting forecasts that projected a double-digit growth. Delving into the actual numbers, imports increased by an impressive 38.1% year-on-year in February, with projections pointing to a 20% rise. Exports fell 1.3% despite expectations of a 12.3% increase. In dollar terms, the figures resulted in a trade deficit amounting [..]

Forex News – Oil range-bound as markets eye output cut deal extension

Posted on March 7, 2017 at 5:09 pm GMT

Crude oil prices are back in focus this week as CERAWeek – an annual international energy gathering – gets underway in Houston, Texas in the United States. Market participants will be looking for any signs of a possible commitment by OPEC and some non-OPEC countries to a possible extension of the output cut deal that was agreed last December and which expires at the end of June. Opinion remains split as to the success of that deal in alleviating the [..]

Forex News – RBA holds rates; reduced odds for rate cut due to rising household debt

Posted on March 7, 2017 at 3:45 pm GMT

Interest rates in Australia were left unchanged following a policy meeting by the Reserve Bank of Australia on Tuesday. This was the sixth consecutive meeting where the main cash rate was kept at a record low 1.50%, ever since the 25 basis-point cut in August last year. The Australian dollar rose against the US dollar soon after the RBA decision due to the upbeat tone of the statement and due to the market lowering its expectation for a rate cut [..]

Week Ahead – NFP eyed ahead of FOMC; ECB and RBA also in focus

Posted on March 3, 2017 at 4:55 pm GMT

The latest non-farm payrolls out of the United States will be on traders’ watch list next week as another solid report will likely be taken as confirmation that the Fed will raise rates when it meets in mid-March. In the meantime, there will be other central bank meetings to keep traders occupied as both the Reserve Bank of Australia and the European Central Bank will be holding their policy meetings. RBA likely to remain neutral Following the upbeat fourth quarter GDP [..]

Forex News – Fed March rate hike hopes overshadow Trump speech

Posted on March 1, 2017 at 3:58 pm GMT

US President Donald Trump’s first speech to Congress late on Tuesday in Washington DC left markets a little disappointed with respect to details on tax policy and infrastructure spending. Many expected it to be a speech in which the President would finally outline in detail his much-hyped economic plans but the only concrete economic policy mentioned was the $1 trillion infrastructure plan which would include both private and public funding, and would stress both ‘Buy American’ and ‘Hire American’. Trump [..]

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