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Week Ahead – After election shock, quieter week awaits with inflation, jobs and retail sales data

Posted on November 11, 2016 at 3:08 pm GMT

After an eventful week following the surprise outcome of the US presidential election, a calmer seven days awaits as economic data moves back under the spotlight. Inflation and retail sales numbers for the UK and the US will come into focus along with Japanese Q3 GDP data, while key indicators out of China will also be watched. UK inflation eyed as weak sterling drives up import prices It will be an important data week for the UK as inflation, unemployment [..]

Forex News – RBNZ cuts rates by 0.25% but kiwi weaker despite shift to neutral stance

Posted on November 10, 2016 at 12:01 pm GMT

The Reserve Bank of New Zealand cut its official cash rate by 0.25% to a record low of 1.75% at its policy meeting today, citing a stronger currency and below target inflation for its decision. The move was widely expected by the markets as the central bank had previously said further easing would be required to lift inflation towards the 2-3% target band. Annual CPI in New Zealand has been running below the RBNZ’s target band since the end of [..]

Forex News – US Treasury yields jump, helping dollar recover; Trump looks to boost US economy with fiscal spending

Posted on November 9, 2016 at 3:25 pm GMT

Donald Trump defied polls and defeated Hillary Clinton in what was a very tight US presidential race. The election results on Wednesday caused concern in financial markets, as a Trump administration raises doubts about globalization since it would be in favour of more protectionist trade policies. Trump wants to revive the US rust belt and punish American companies such as auto makers who produce in Mexico due to lower wages. A Trump administration would be a backlash for globalization and [..]

Forex News – Markets calmer after being rocked by volatility from shock Trump win

Posted on November 9, 2016 at 12:03 pm GMT

Financial markets steadied after the start of European trading, reversing some of the sharp gains from just a few hours before when the early counts pointing to a Trump win triggered a wave of panic globally. Expectations of Hillary Clinton winning the US presidential election had been rising in the days prior to the vote, with most polls giving the Democratic candidate a slim lead against her Republican rival, Donald Trump. Clinton’s increasing odds had boosted risk assets, with global [..]

Forex News – China’s exports continue to decline on subdued demand

Posted on November 8, 2016 at 1:46 pm GMT

Exports from China declined for a seventh consecutive month in October, showing little sign of a turnaround. Imports also disappointed as the latest trade numbers raised concerns about the sustainability of growth in the world’s second largest economy. According to today’s data, exports fell by 7.3% year-on-year in October, missing estimates of a milder decrease of 6.0%. However, the figure was an improvement on the previous month’s 10% drop. Imports declined by 1.4% y/y in October, which was also better [..]

Forex News – Clinton FBI boost spurs dollar and risk rally

Posted on November 7, 2016 at 12:02 pm GMT

Risk appetite was back on in Monday’s trading just a day before Americans go to the polls to vote for their next president. The dramatic shift in sentiment comes after the FBI on Sunday said it had not changed its initial findings that Hillary Clinton did not break the law by using a private email server when she was Secretary of State. The unchanged conclusion follows the FBI’s announcement 10 days ago that it had reopened its investigation after the [..]

Forex News – Nonfarm payrolls rise by 161,000 in October, muted reaction by markets as US elections in focus

Posted on November 4, 2016 at 2:52 pm GMT

The US jobs report that was released today indicated that employment growth was solid and suggested a Fed rate hike in December is still on the table. The jobs report came after Wednesday’s Fed meeting and just days before the US elections. In October, nonfarm payrolls rose by 161,000 which was below expectations of 175,000. The year-to-date monthly average is 181,000 jobs created and today’s number falls short of this but it is still a respectable number. What was encouraging was [..]

Week Ahead – US elections take centre stage in quiet data week; RBNZ also eyed

Posted on November 4, 2016 at 2:09 pm GMT

The presidential election in the United States looks set to dominate the markets next week as investors become increasingly uneasy about the ever tightening race between Clinton and Trump. A win by either candidate would likely rule the market theme beyond Election Day in what is a relatively quiet week for economic data. The main non-political event next week will be the Reserve Bank of New Zealand’s policy meeting, while Chinese, Eurozone and UK data will fill up the economic [..]

Forex News – Sterling propelled to 4-week high as UK High Court rules Parliament must vote on Brexit plans

Posted on November 3, 2016 at 3:24 pm GMT

There was a lot of focus on the UK and sterling today due to some important events and data taking place. The pound rallied significantly on the news of the UK High Court ruling that Parliament must vote before Article 50 is invoked. So any Brexit plan has to be approved first by lawmakers before being implemented. After the court ruling, PM Theresa May’s office said that she still plans to trigger Article 50 before the end of March. Sterling [..]

Fed holds rates but sees increased case for rate hike

Posted on November 2, 2016 at 7:44 pm GMT

The US Federal Reserve announced no change to its benchmark rate on Wednesday as it concluded its two-day policy meeting. The Federal Open Market Committee kept the target range for the federal funds rate unchanged at 0.25% to 0.50%, as expected, but signalled it was getting closer to achieving its objectives of maximum employment and inflation of 2%. In its statement, the Fed said the case for a rate rise “has continued to strengthen” but has decided to wait for “some” further [..]

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