Forex Previews

Week Ahead – UK post-Brexit data to be closely monitored; dollar to tune into Fed minutes

Posted on August 12, 2016 at 1:32 pm GMT

The British pound will likely experience some movement next week, as one of the first major batches of post-Brexit economic data will be released. Elsewhere, the US inflation report, some Fed speakers and the Fed meeting minutes and Japanese GDP growth for the second quarter, will all be closely watched by market participants. The week will get off to a slow start, with the first important indicator coming out of Japan on Monday in the form of GDP for the [..]

RBNZ cuts rates to record low but kiwi jumps to 15-month high

Posted on August 11, 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 2.0% at its policy meeting earlier today as it attempts to fend off disinflation. Declining price pressures prompted the RBNZ to cut rates for the second time this year as annual inflation in New Zealand remains stuck near 0%. Expectations of a rate cut had been largely priced in by the markets after the central bank made an unscheduled economic update on [..]

Japan machinery orders signal rebound in business investment

Posted on August 10, 2016 at 12:21 pm GMT

Core machinery orders in Japan rose sharply in June, reversing some of the declines of the previous two months to post the biggest monthly gain since January. Seen as a strong indicator of business investment, core private-sector machinery orders jumped by 8.3% month-on-month in June, beating estimates of 3.1%. The figure is a sharp turnaround from the 1.4% drop in May and an 11% plunge seen in April. On a 12-month basis, core machinery orders were down 0.9% over the [..]

UK retail spending rebounds but trade and manufacturing data disappoint

Posted on August 9, 2016 at 1:07 pm GMT

Fresh economic data out of the UK today painted a mixed picture of the British economy as retail spending appeared to rebound in July but manufacturing output continued to decline, while the trade deficit ballooned in June. British consumers returned to the high street in July as retail spending rose by an annual rate of 1.9%, according to the British Retail Consortium. This is up sharply from the 0.2% rate seen in June when caution ahead of the Brexit referendum [..]

US non-farm payrolls and earnings beat estimates; dollar jumps

Posted on August 5, 2016 at 3:04 pm GMT

It was another strong month for US jobs in July as non-farm payrolls beat estimates for a second month, underlining the view that the labor market remains solid despite a blip in May. Non-farm payrolls rose by 255k in July, sharply above estimates of 180k. In an additional boost, June’s original estimate of 287k was revised higher to 292k and May’s figure was revised back up by 13k. July’s jobs report was positive across the board with gains made in [..]

Week Ahead – RBNZ meets amid rate cut expectations; China data also eyed

Posted on August 5, 2016 at 12:35 pm GMT

The Reserve Bank of New Zealand is expected to follow the RBA in cutting rates next week as New Zealand’s inflation outlook deteriorates further. Industrial output numbers from China, the Eurozone and the UK will be the main data of the week, while there will be no shortage of indicators to watch out of China. Eurozone industrial output to rebound June was a poor month for industrial production across much of the Eurozone but a sizeable rebound is expected in [..]

Bank of England cuts rates and restarts QE; signals further easing

Posted on August 4, 2016 at 2:31 pm GMT

The Bank of England cut interest rates for the first time since March 2009 at its policy meeting today, reducing borrowing costs in the UK from 0.50% to a new record low of 0.25%. The move had been fully priced in by the markets but the Bank surprised by overdelivering with its stimulus package. In addition to the 0.25bps rate cut, the BoE announced a combination of measures aimed at lifting demand in the economy, which the Bank sees as [..]

Germany leads Eurozone economic activity higher but France stagnates in July

Posted on August 3, 2016 at 2:53 pm GMT

Eurozone output edged higher last month as the final reading of the Markit composite PMI rose from 53.1 in June to 53.2 in July. The final reading is better than the flash estimate of 52.9 and confirms that Britain’s referendum vote to leave the EU had little impact on overall output in the euro area. Expectations were for the final reading to remain unrevised. The services sector expanded at a faster pace than the manufacturing sector but in an encouraging [..]

Kiwi down on rate cut expectations but maintains uptrend

Posted on August 3, 2016 at 11:45 am GMT

Muted wage growth data out of New Zealand today reinforced expectations that the country’s central bank will likely cut interest rates next week. The Reserve Bank of New Zealand is due to hold its latest policy meeting on August 11 and is widely expected to lower its official cash rate by 25bps to 2.0% as declining inflationary pressures continue to worry policymakers. Labour costs in the private sector rose by just 1.6% annually in the second quarter of the year, [..]

RBA cuts rates to new record low but impact on aussie limited

Posted on August 2, 2016 at 11:21 am GMT

The Reserve Bank of Australia cut rates for the second time this year, lowering its cash rate by 25bps to a new record low of 1.50%. Although the move was widely expected, some analysts had doubted whether the RBA would cut rates this month after last week’s inflation data for the second quarter showed underlying inflation had not weakened by as much as had been expected. However, it appears that the bigger-than-expected drop in headline inflation and signs of a [..]

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