Forex Previews

Week Ahead – ECB to hold meeting following key Eurozone elections

Posted on December 2, 2016 at 2:57 pm GMT

The ECB’s last meeting of 2016 will probably be the main event of the week ahead, although the markets will first have to grapple with the results of the weekend elections in Austria and the outcome of the Italian referendum (both on Sunday). Other key events next week will include the Reserve Bank of Australia rate-setting meeting as well as GDP data for the country. It will be comparatively quiet in terms of major US data, with exception of Factory [..]

Forex News – Rising oil prices lift inflation expectations, boosting dollar and yields

Posted on December 1, 2016 at 11:57 am GMT

Oil prices soared after an agreement was reached by members of the Organization of the Petroleum Exporting Countries (OPEC) to cut production by 1.2 million barrels a day. This was the first time since 2008 that the cartel came to a deal to trim production levels, as it aims to boost oil prices that have been depressed for over two years due to a supply glut. The OPEC deal on Wednesday sent oil prices higher, with WTI rising above $50 [..]

Week Ahead – Nonfarm payrolls eyed ahead of FOMC; Japanese data also under the spotlight

Posted on November 25, 2016 at 3:11 pm GMT

The November nonfarm payrolls report will likely be the highlight of the coming week as it will be the last before December’s FOMC meeting. There will be plenty of other major data for the US, while Japanese indicators will also attract some attention. The European calendar will be relatively quieter with flash inflation for the Eurozone being the more important release. Eurozone prices on an uptrend The week will start with economic sentiment indicators out of the Eurozone on Monday. [..]

Forex News – UK Budget forecasts lower growth due to Brexit, increases in spending planned

Posted on November 23, 2016 at 7:25 pm GMT

UK Chancellor of the Exchequer Philip Hammond gave his first Autumn Statement address to parliament today. Much has changed since the previous finance minister George Osborne gave his statement. For one, the UK has since voted to leave the European Union. Also, growth forecasts have been lowered for 2017 and 2018. According to the OBR (Office for Budget Responsibility) GDP is now forecast to grow by 1.4 percent in 2017, down from an estimate of 2.2 percent made in March, [..]

Forex News – Eurozone economic activity at 11-month high in November but euro subdued

Posted on November 23, 2016 at 11:38 am GMT

Business activity across the euro area expanded at the fastest pace since December 2015 in November, suggesting Eurozone growth is accelerating in the fourth quarter. The Eurozone composite PMI increased from 53.3 in October to 54.1 in November, according to Markit’s flash reading, beating forecasts it would stay unchanged. The flash services PMI was up sharply from 52.8 to 54.1 in November, compared to expectations of a smaller rise to 53.0. The flash manufacturing PMI saw a more modest improvement, [..]

Week Ahead – Eurozone PMIs and Japan inflation in focus in quiet week

Posted on November 18, 2016 at 2:05 pm GMT

With the dollar rally showing no sign of abating, expectations of US fiscal and monetary policy could continue to set the market theme in an otherwise relatively quiet week for economic data. The main highlights on the data front will come from Eurozone flash PMI numbers and Japanese inflation figures. Eurozone business surveys in focus ECB President Mario Draghi said this week the recovery in the Eurozone was becoming more broad-based and recent PMI data supports this view. Flash PMI [..]

Forex News – UK retail sales surge in October but pound quickly reverses gains

Posted on November 17, 2016 at 11:39 am GMT

British consumers showed little sign of slowing their spending in October even as jobs growth appears to be moderating and retail prices are edging higher. Retail sales in the UK jumped by 1.9% month-on-month in October, well above expectations of 0.4% and sharply up from September’s upwardly revised 0.1% increase. On a 12-month basis, retail sales stood 7.4% higher in October compared to a year ago, comfortably beating estimates of 5.3%. The surge was driven by a 5.1% m/m increase [..]

Forex News – Australian economy creates fewer jobs than expected in October; aussie remains below $0.75

Posted on November 17, 2016 at 11:10 am GMT

The Australian economy created fewer jobs than forecast last month, despite the overall unemployment rate remaining unchanged at 5.6% from the previous month. There was a shift to more part-time jobs, suggesting a less vibrant employment sector. According to a report released by the Australian Bureau of Statistics (ABS) on Thursday, employment rose a net 9,800 jobs in October. This was well below the forecast for a gain of 20,000 jobs. Adding to the disappointing data was the downward revision [..]

Forex News – Euro rebounds from 11-month low as Italian referendum looms

Posted on November 15, 2016 at 12:11 pm GMT

The euro has come under surprise downside pressure since Donald Trump’s shock victory of the US presidential elections. Voter revolt in the United States and in Britain has generated concerns that a similar anti-establishment sentiment across the European continent could be given a boost ahead of upcoming elections in France and Germany and a constitutional referendum in Italy. In fact, the referendum in Italy on December 4 on proposed changes to the constitution that involves streamlining the country’s legislative process [..]

Forex News – Japan’s economy grows better than expected in Q3 as strong exports boost GDP

Posted on November 14, 2016 at 12:42 pm GMT

Economic growth in Japan accelerated to an annualized rate of 2.2% in the third quarter of this year, the fastest since the first quarter of 2015, as exports recovered. On a quarter-on-quarter basis, Japan’s GDP expanded by 0.5% in the three months to September, beating estimates that it would grow by 0.2% as with the prior quarter. Leading the expansion was a 2% jump in exports over the quarter, while imports fell. As a result, there was a positive contribution [..]

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