Forex Previews

Forex News – Aussie slides on weak inflation as data keeps RBA rate cut prospect alive

Posted on January 25, 2017 at 2:35 pm GMT

Inflation data out of Australia on Wednesday failed to match analysts’ expectations, suggesting price pressures remain subdued despite rates being cut to a record low of 1.5%. The 12-month CPI rate rose from 1.3% in the third quarter to 1.5% in the final three months of 2016. The figure is the highest in a year but below forecasts of 1.6% and still below the Reserve Bank of Australia’s target band of 2-3%. On a quarter-on-quarter basis, CPI was up 0.5%, [..]

Forex News – UK Supreme Court decision ruling brings relief to both government and opponents

Posted on January 24, 2017 at 1:22 pm GMT

The Supreme Court in the UK ruled on Tuesday that the British government is not authorised to bypass parliament in invoking Article 50 – the formal notice given to the EU for triggering the exit process from the bloc. The decision follows an appeal by the government to overturn the High Court’s initial ruling back in November when the court had ruled in favour of the businesswoman, Gina Miller, who had brought the legal case to the courts. The judges [..]

Forex News – Trump Inauguration fails to reignite dollar rally

Posted on January 23, 2017 at 4:16 pm GMT

Donald Trump’s conciliatory victory speech following the November 8 election spurred mass optimism in the markets that led to a risk-on period with the dollar recording significant gains against its main counterparts. His inauguration speech though fared little resemblance to the November 9 one, as the themes of protectionism and nationalism reemerged as central ones. The tone of his speech was also confrontational rather than unifying. Market participants have priced in a lot of positive developments associated with the Trump presidency [..]

Week Ahead – First look at US, UK Q4 GDP; UK Supreme Court to rule on Brexit trigger

Posted on January 20, 2017 at 2:46 pm GMT

GDP and CPI data will dominate the coming week as the UK and the US publish their first estimates of how growth fared in Q4, while the latest inflation numbers out of Australia, New Zealand and Japan will come under the spotlight too. Headlines from Donald Trump’s inauguration speech could have an impact on trading on Monday, and there could also be some volatility from the UK Supreme Court’s ruling on triggering Article 50 on Tuesday. Eurozone economy likely strong [..]

Forex News – Bank of Canada does not rule out rate cut amid Trump trade war threat and stronger loonie

Posted on January 19, 2017 at 2:40 pm GMT

The Bank of Canada announced on Wednesday that it is holding its overnight target rate at 0.50% at its first policy meeting of the year. The decision was in line with most economists’ forecasts and was accompanied with a slightly more upbeat growth outlook. In its quarterly monetary policy report, the Bank upped its growth forecast for 2016 from 1.1% to 1.3% and for 2017 from 2.0% to 2.1%. The higher growth is expected to come from increased household consumption [..]

Forex News – Brexit clarity provides much needed respite to battered pound

Posted on January 18, 2017 at 1:41 pm GMT

UK Prime Minister, Theresa May, delivered her long-awaited speech on Brexit on Tuesday where she laid out the government’s objectives in the Brexit negotiations with the EU. After much speculation over what path Britain’s exit process from the EU will take, May confirmed for the first time yesterday that the UK will not seek to retain membership of the European single market once it’s out. As expected, May also said the UK wants to regain full control of immigration and [..]

Week Ahead – China GDP, ECB meeting and May’s Brexit speech in focus

Posted on January 13, 2017 at 2:30 pm GMT

The coming week will be a busier one for financial markets as key data releases and central bank meetings get underway. GDP figures out of China and the European Central Bank’s policy meeting will be the highlights but the biggest headline grabber could be the much-awaited speech on Brexit by British Prime Minister, Theresa May. Also coming up next week is the World Economic Forum in Davos, Switzerland on January 17-20, though major central bank heads appear to be giving [..]

Forex News – Lack of Trump policy detail drives dollar to one-month lows; peso tumbles

Posted on January 12, 2017 at 1:13 pm GMT

Donald Trump’s highly anticipated press conference on Wednesday left financial markets disappointed as the US President-elect provided little new detail on what economic policies he will pursue once he takes office on January 20. The US dollar fell sharply against its major counterparts as traders had been hoping that Trump would clarify some of his campaign pledges such as on tax cuts, infrastructure spending and trade policy. Expectations of a fiscal stimulus by the incoming administration had triggered the latest [..]

Week Ahead – 2017 gets off to busy start with Non-farm payrolls and PMI data

Posted on December 30, 2016 at 1:22 pm GMT

As the holiday period comes to an end, the economic calendar is looking more packed over the coming week despite many major markets being closed on January 2nd. The US and the Eurozone will have the busiest calendars, while PMI figures out of China and the UK will also be important. China manufacturing PMI likely to ease in December Whilst most of the world will be celebrating the New Year, PMI data out of China will start the week on [..]

Forex News – Review of 2016

Posted on December 29, 2016 at 12:08 pm GMT

The year 2016 got off to a turbulent start, with worries about China’s economy escalating once again and fresh volatility in financial markets triggering concerns about a deepening crisis. But despite bigger shocks that followed, namely, Brexit and the US election outcome, financial markets appear to be ending the year on a positive note, even as further economic and political risks lie ahead in 2017. China slowdown triggers market turbulence China and its slowing economy was much of the focus [..]

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