Forex Previews

German ZEW economic sentiment plummets after Brexit

Posted on July 19, 2016 at 1:04 pm GMT

Business sentiment in Germany took a big hit in July from the UK vote to leave the EU according to the latest ZEW survey. The ZEW economic sentiment index plummeted from 19.2 in June to -6.8 in July. This was the lowest level since November 2012 in the midst of the Eurozone debt crisis and was well below expectations of 9.0. The UK’s EU referendum outcome on June 24 took markets by surprise, creating uncertainty about the outlook for the [..]

Gold, yen retreat from short-lived spike after failed Turkish coup attempt

Posted on July 18, 2016 at 12:32 pm GMT

A failed attempt by members of Turkey’s military on Friday to overthrow the Turkish government threatened to undo the improvement seen in risk sentiment over the week. With markets just starting to stabilize following the shock UK referendum result to leave the EU, a deadly terrorist attack in France and a coup attempt in Turkey risked causing another major market panic. However, market response to the Nice attack on Thursday was muted as investors saw it as an isolated event, [..]

Week Ahead – ECB meeting eyed in post-Brexit world; busy UK calendar also in focus

Posted on July 15, 2016 at 2:14 pm GMT

The European Central Bank will hold its first monetary policy meeting next week since the UK’s decision to exit the European Union. The UK will stay under the spotlight though as key economic indicators for the British economy are released. The US and Japan will have a quieter seven days, with the latter closed on Monday for a national holiday. New Zealand CPI to pick-up slightly CPI data out of New Zealand will start the week on Monday. Inflation has [..]

Bank of England holds rates in surprise move; signals August easing

Posted on July 14, 2016 at 1:31 pm GMT

The Bank of England defied market expectations of an interest rate cut by holding rates at 0.5% in a surprise move on Thursday. Most market participants had priced in a 0.25% rate cut at today’s meeting as the Bank of England takes measures to cushion the UK economy from the anticipated negative impact from Brexit. However, an August move is now a certainty as indicated in the Bank’s accompanying statement from today’s announcement. According to the statement, “most members of [..]

Bank of Canada keeps rates on hold but Brexit and wildfires to weigh on growth

Posted on July 13, 2016 at 3:36 pm GMT

The Bank of Canada held interest rates unchanged at 0.5% at its monetary policy meeting on Wednesday as expected. However, the central bank lowered its outlook for the country’s GDP for 2016 in its latest quarterly report as second quarter growth is expected to take a big hit from the wildfires that broke out in Canada’s oil sands at the beginning of May. The forecast for annualized growth in the second quarter was lowered sharply from +1.0% to -1.0%. The [..]

May set to become British PM but unlikely to trigger Article 50 anytime soon

Posted on July 12, 2016 at 9:59 am GMT

There was hope that the political uncertainty that’s predominated the British political establishment as well as financial markets since the shock outcome of the Brexit referendum is about to end after Theresa May became the sole candidate in the Conservative party’s leadership race. British politics took another unexpected turn yesterday after one of the two remaining candidates to lead the UK Conservative party pulled out of the race. Andrea Leadsom, who was the only candidate from the ‘Brexit’ camp to [..]

Abe election win boosts stimulus hopes; dollar back above 102 yen

Posted on July 11, 2016 at 11:21 am GMT

Japan’s ruling coalition between Prime Minister Abe’s Liberal Democratic Party and its allies won a near two-third majority in elections on Sunday for parliament’s upper house, giving the government a stronger mandate over its economic policies. The government already has a two-thirds majority in the lower house, and with the support of independents, is likely to secure two-thirds of the votes in the upper house too, which would help in passing constitutional changes. However, the government is expected to prioritise [..]

Week Ahead – First post-Brexit BoE meeting and slowing China GDP could signal fresh stimulus

Posted on July 8, 2016 at 2:52 pm GMT

The Bank of England will come in focus next week as it holds its first policy meeting following the shock referendum outcome when Britons voted to leave the EU. The Chinese economy will also come under the limelight once again as a flurry of data is released, including GDP growth figures for the second quarter. US inflation and retail sales data will also be watched. China GDP to slow further as exports continue to struggle China will start the week [..]

Week Ahead – US jobs expected to bounce back; RBA to stand pat

Posted on July 1, 2016 at 2:52 pm GMT

Fed rate hike expectations may have eased following the shock Brexit vote but US non-farm payrolls will still be closely watched next week as it’s an important barometer for the US economy. Also to keep an eye on are central bank meetings in Australia and in Sweden. Fed speeches and non-farm payrolls in focus After a quiet start to the week as Americans celebrate Independence Day on Monday, things will get busier from thereon with plenty of economic data to [..]

Eurozone inflation rises to 5-month high as energy drag recedes

Posted on June 30, 2016 at 11:57 am GMT

Inflation across the 19-nation euro area rose to a 5-month high in June as the drop in energy prices moderated. According to Eurostat’s flash estimate, annual CPI increased to 0.1% in June from -0.1% in May. It was the first positive reading since January and was above consensus forecasts of 0%. Core CPI, which excludes energy and unprocessed food items, was unchanged at 0.8% year-on-year, in line with analysts’ expectations. The pick-up in the headline rate was mainly due to [..]

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