Forex Previews

Aussie braces for dovish tilt by RBA as Australia battles second virus wave – Forex News Preview

Posted on July 31, 2020 at 1:06 pm GMT

The Reserve Bank of Australia is set to stand pat again when it announces its latest policy decision on Tuesday at 0430 GMT. As the Australian economy climbs out of its worst recession in decades, policymakers are not anticipated to feel the urge to act in July. However, with the country continuing to see an alarming surge in new coronavirus cases, it may only be a matter of time before additional monetary support becomes necessary. Any hints on Tuesday that [..]

Week ahead – Can nonfarm payrolls halt the dollar’s descent?

Posted on July 31, 2020 at 12:43 pm GMT

It’s a huge week ahead, with the Reserve Bank of Australia and the Bank of England both announcing their rate decisions ahead of the all-important US employment data. For markets, the burning question is whether a decent payrolls report will be enough to halt the dollar’s relentless slide. The other variable that will impact most charts through the risk sentiment channel is whether Congress will reach a compromise on the new rescue package, and if so, how much they will [..]

Euro to shrug off grim GDP data as outlook brightens on recovery plan – Forex News Preview

Posted on July 29, 2020 at 10:55 am GMT

GDP data out of the Eurozone on Thursday and Friday are expected to show the continent is facing its worst economic crisis since the second world war. Yet, the euro is looking the most bullish against the US dollar in a very long time. A strong stimulus response, combined with relative success in bringing the COVID-19 outbreak under control, has raised confidence in Europe’s ability to not only fight the crisis but to come out of it stronger. Hence, worse-than-expected [..]

Australian CPI and China PMIs could add optimism for more gains in aussie – Forex News Preview

Posted on July 27, 2020 at 3:05 pm GMT

As markets deal with the real threat of surging coronavirus cases, the risk-sensitive Australian dollar will be looking at several indicators coming out this week and the following Monday out of Australia and China. The Australian inflation report is due on Wednesday at 0430 GMT, while China’s NBS and Caixin/Markit manufacturing PMIs are coming out on Friday (0430 GMT) and next Monday (0145 GMT), both of which come into the spotlight for traders. In the previous quarter, the annual inflation rate in Australia reached the Reserve Bank of Australia’s (RBA) target, for the first [..]

Fed meeting: A more cautious message – Forex News Preview

Posted on July 27, 2020 at 11:56 am GMT

The Federal Reserve will wrap up its latest meeting at 18:00 GMT Wednesday. No change in policy is expected, so the focus will be on Chairman Powell’s press conference at 18:30 GMT. With signs that the US recovery has flattened lately, Powell could adopt a more cautious tone, opening the door for more action in September. If so, that might be enough to accelerate the dollar’s freefall, though Thursday’s GDP numbers could provide some support. Under pressure The US [..]

Week Ahead – Fed meets as virus storm worsens; US and Eurozone set for historic GDP collapse

Posted on July 24, 2020 at 12:26 pm GMT

As US politicians squabble over the next fiscal stimulus bill and the country’s virus death toll ticks up again, markets may lean on the Federal Reserve next week for a quick fix. The Federal Open Market Committee (FOMC) meeting will undoubtedly be the most eagerly awaited event of the week. But second quarter GDP prints out of the United States and the euro area will not be far behind as the full extent of the economic shock from COVID-19 is [..]

European PMIs: More good news for the euro? – Forex News Preview

Posted on July 23, 2020 at 12:23 pm GMT

With the EU recovery fund deal now in the rear-view mirror, euro traders will turn their sights to the Eurozone’s preliminary PMIs for July, due at 08:00 GMT Friday. Forecasts point to an uptick in all indices, reflecting the smooth re-opening process in Europe. If so, this would be another piece of good news for the high-flying euro, whose rally may still have room to run, especially if the Fed hurts the dollar next week. Europe vs America? It’s [..]

UK retail sales and PMIs to put recovery on track but Brexit lurks in the background – Forex News Preview

Posted on July 22, 2020 at 2:25 pm GMT

Economic data out of the United Kingdom this week is expected to show the recovery gathered pace after the lifting of more lockdown restrictions in June and July. June retail sales figures are due on Friday at 06:00 GMT and will be followed by the flash PMI prints for July at 08:30 GMT. Upbeat numbers could bolster the pound’s advances, having bounced to the $1.27 region in the last few sessions. But Brexit woes risk spoiling cable’s mini rally amid [..]

Canadian inflation and retail sales to drive loonie – Forex News Preview

Posted on July 22, 2020 at 12:19 pm GMT

Canada will publish its retail sales data for the month of May at 1230 GMT on Tuesday before releasing inflation figures for June at the same time on Wednesday. Given its sharp tumble in the preceding month, the retail sales report could be the most important market mover among data releases for the loonie this week, which has just managed to stabilize from last month’s sell-off. Why the Bank of Canada is avoiding a rate cut The Bank of Canada (BoC) kept its interest [..]

EU recovery fund done; what’s next for euro rally? – Forex News Preview

Posted on July 22, 2020 at 12:18 pm GMT

EUR/USD is poised to re-activate the bullish cycle that was interrupted by Covid-19 in early March after the EU recovery fund finally took shape. Fundamentally and technically, the pair has several reasons to hope for better days, but the euro may need to win the data competition against the dollar during the summer break in order to reach fresh highs. Recovery fund deal accomplished It was an intense four-day summit in Brussels as EU leaders struggled to agree on a recovery fund that [..]

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.

How can we help?

Live Chat Terms