Forex Previews

Japan data fails to provide clear signals to outcome of BoJ policy review

Posted on August 31, 2016 at 11:44 am GMT

At its July policy meeting, the Bank of Japan once again disappointed markets when it left interest rates and its bond buying program unchanged and announced only an increase in the size of its ETF purchases. The decision was accompanied by a statement that said the Bank will conduct a “comprehensive assessment” of the effect of its policies at its upcoming September meeting. This raised speculation the BoJ may be getting ready to rein in its massive stimulus program as [..]

US personal consumption and income continue to expand at solid rates

Posted on August 29, 2016 at 3:15 pm GMT

Consumer spending in the United States slowed slightly in July but continued to grow at a respectable rate, while personal income rose at the fastest pace in three months. Personal consumption was up 0.3% month-on-month in July, in line with forecasts but down from the previous month’s upwardly revised 0.5% rate. The June figure was initially reported at 0.4%. Personal income also met expectations, rising by 0.4% m/m in July, up from 0.3% in the prior month, which was also revised [..]

Week Ahead – Big week for US data; Eurozone inflation and China, UK PMI also eyed

Posted on August 26, 2016 at 4:03 pm GMT

The focus will be on the US economy next week as the latest non-farm payrolls are released and could steer the Fed closer to raising rates, while data on personal consumption expenditure will also be closely watched. Also to attract attention are flash inflation figures from the Eurozone, manufacturing PMIs out of China and the UK, as well as household spending and industrial output data from Japan. US non-farm payrolls and consumption data in focus Unusually, the week will [..]

Eurozone flash PMI at 7-month high as services rebound

Posted on August 23, 2016 at 11:10 am GMT

Eurozone activity continued to expand at a moderate rate in August, according to Markit’s flash PMI estimate, showing little sign of any immediate negative impact from the Brexit vote. The flash reading of the composite PMI for the euro area rose from 53.2 in July to 53.3 in August – the highest in seven months and above expectations of 53.1. The increase was led by the services sector as manufacturing activity weakened slightly. Eurozone services PMI rose from 52.9 to [..]

Oil back in bull market but rally could already be fizzling out

Posted on August 22, 2016 at 1:16 pm GMT

Oil prices have seen an impressive rally of over 20% ever since reports of fresh efforts to revive talks for a production freeze started emerging in early August. The latest rally reversed most of the declines since June when prices briefly broke above $50 a barrel. The six-month long uptrend from January to June that took prices to near one-year highs was partly driven by supply disruptions and declining US output, and partly by the failed negotiations in April to [..]

Week Ahead – All eyes on Yellen at Jackson Hole; Flash Eurozone PMI and GDP revisions also in focus

Posted on August 19, 2016 at 3:11 pm GMT

With not too many items on the economic calendar next week, attention will turn to Fed Chair Janet Yellen when she speaks at this year’s Jackson Hole Symposium in Wyoming, United States. The annual economic policy summit of central bankers and policy experts will be closely watched this year as investors look for clues from Yellen on the timing of the next US rate rise following some hawkish remarks from Fed officials recently. In terms of data, Eurozone flash PMI, [..]

Sterling soars above 1.31 dollars as warm weather boosts UK retail spending

Posted on August 18, 2016 at 11:43 am GMT

Britons defied fears of uncertainty and turmoil in the immediate aftermath of the Brexit vote and instead headed to the high street as warm weather boosted consumer spending in July. Data out today showed retail sales jumped by 1.4% month-on-month in July, more than reversing the 0.9% drop in the previous month and well above expectations of a 0.2% rise. On a 12-month basis, retail sales beat estimates of 4.2% to rise by 5.9% – the fastest pace in almost [..]

Fresh rate talk by Fed officials ups odds of 2016 rate hike

Posted on August 17, 2016 at 2:34 pm GMT

The odds of a rate hike by the Fed in 2016 as implied by the futures market rose above 50% on Tuesday for the first time since the Brexit referendum. Regional Fed presidents William Dudley and Dennis Lockhart yesterday reignited expectations that the Fed could tighten policy this year, adding to the rate rise calls by John Williams made last week. Expectations of a US rate increase had receded after the shock ‘leave’ outcome of the UK’s EU referendum as [..]

US inflation remains muted as energy prices fall for first time in 5 months

Posted on August 16, 2016 at 2:27 pm GMT

Consumer prices in the United States showed few signs of accelerating as annual CPI eased to 0.8% in July from 1.0% in June. Consensus forecasts were for CPI to slow to 0.9%. On a month-on-month basis, prices in July were unchanged from June, as expected. A 4.7% drop in gasoline prices over the month – the first decline in five months – dragged down the consumer price index. Overall energy prices were down by 1.6%. However, this was partly offset [..]

Weak pound pushes up UK factory prices; Headline inflation at 20-month high

Posted on August 16, 2016 at 11:15 am GMT

Producer price inflation data released in the UK today revealed the first evidence that the dramatic slide in the value of the pound has started to create upward pressure on factory input prices in the UK. Consumer price inflation was largely within estimates however, though the headline rate ticked up to a 20-month high. Input prices rose at an annual rate of 4.3% in July, beating forecasts of 2.0% and a sharp jump from -0.5% in June. This was the [..]

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