Forex Previews

Fed keeps rates unchanged; still expects two hikes in 2016

Posted on June 15, 2016 at 8:39 pm GMT

The US Federal Reserve delivered no surprises today as it kept its benchmark interest rate unchanged at the end of its two-day policy meeting. As expected, the Federal Open Market Committee (FOMC) kept the federal funds rate unchanged at between 0.25%-0.50% for the fourth straight month. Market expectations of a rate hike in June had risen sharply after the release of the April meeting minutes in mid-May, which were surprisingly hawkish. However, expectations were pared back drastically after hugely disappointing [..]

UK jobless rate falls to lowest since 2005 as wage growth edges up

Posted on June 15, 2016 at 12:47 pm GMT

The number of people unemployed in the UK fell by 20,000 to 1.67 million in the three months to April, the lowest since the three months to May 2008. The employment rate was unchanged at a record high of 74.2%. There were 31.59 million people in work in the three months to April – 55,000 more than the preceding three months. The drop in the number of jobseekers pushed Britain’s unemployment rate to 5.0% in the three months to April [..]

Solid US retail sales fail to move the dollar

Posted on June 14, 2016 at 2:29 pm GMT

Retail sales in the United States rose more than expected in May, easing fears that the surge seen in April would be a short-lived improvement. May retail sales were up 0.5% month-on-month according to the advance report, beating estimates of 0.3%. It follows a jump of 1.3% in the previous month, which broke a series of weak readings since the end of 2015. On a 12-month basis, sales were 2.5% higher than in May 2015. The biggest monthly gain came [..]

Chinese stocks tumble over 3% after investment slows to lowest since 2000

Posted on June 13, 2016 at 11:37 am GMT

Shares in China posted their sharpest daily drop since February as concerns over slowing growth, as well as heightened fears of a UK exit from the European Union weighed on the stock market today. The health of China’s economy was back in focus on Monday following the release of key economic indicators. Fixed-asset investment in urban areas rose by 9.6% on an annual basis between January and May, the lowest since 2000 and below expectations that it would stay unchanged [..]

Week Ahead – Central bank policy to drive the markets as Fed, BoJ, BoE and SNB meet

Posted on June 10, 2016 at 11:53 am GMT

Key data releases next week out of China, the UK and the US will likely struggle to get much attention as monetary policy takes center stage. The US Federal Reserve will hold its highly anticipated FOMC meeting but the Bank of Japan’s meeting may be the one to watch out for, while the Bank of England and the Swiss National Bank are unlikely to produce any surprises. Main China indicators to hold steady in May Data out of China is [..]

New Zealand dollar rallies amid RBNZ reluctance to cut rates on house price concerns

Posted on June 9, 2016 at 11:16 am GMT

The Reserve Bank of New Zealand (RBNZ) kept the official cash rate unchanged at 2.25% for the second straight month at its monetary policy meeting today. The decision was in line with most economists’ forecasts although some had expected another cut to follow March’s 0.25% reduction. The disappointment that the RBNZ did not surprise with another cut was coupled with a slightly less dovish than expected statement by the central bank. In today’s statement, the RBNZ said house prices in [..]

Yuan rebounds from 5-month lows on China trade data ahead of holiday weekend

Posted on June 8, 2016 at 12:11 pm GMT

Imports to China fell by less than expected in May, raising hopes that domestic demand in the world’s second largest economy is strengthening. Chinese imports have been declining on a year-on-year basis since November 2014 as the economic slowdown has led to lower demand for international goods and raw materials. May imports were down 0.4% on an annual basis, the lowest decline since December 2014 and above estimates that they would fall by a much larger 6.0%. Exports were slightly [..]

Aussie jumps 1% after RBA cools on further rate cuts

Posted on June 7, 2016 at 10:44 am GMT

The Reserve Bank of Australia (RBA) kept its cash rate unchanged at 1.75% at its policy meeting on Tuesday in a widely expected move. But in a surprise change of tone, the accompanying statement from today’s meeting was a departure from the usual language where the RBA would maintain an easing bias. In today’s statement, RBA Governor Glenn Stevens said “the Board judged that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in [..]

Dollar plummets after big miss on US non-farm payrolls

Posted on June 3, 2016 at 2:56 pm GMT

Jobs growth in the United States slowed to the lowest since 2010 in May even as the unemployment rate fell to an 8½-year low. Non-farm payrolls missed forecasts by a large margin as they rose by just 38k instead of the expected 164k. Adding to the poor figure was a downward revision to April’s reading from 160k to 123k. The disappointing increase in the number of new jobs was in sharp contrast to the surprise dip in the jobless rate, [..]

Week Ahead – Light week for US data but Yellen speech eyed; RBA and RBNZ meet

Posted on June 3, 2016 at 1:23 pm GMT

After a packed week for US data, the US calendar is looking relatively light for the next seven days. However, the spotlight will stay on the US as Fed Chair Janet Yellen delivers a speech on June 6, which may offer the final clue on whether the Fed will raise rates in the middle of the month. Also to watch are revised GDP estimates for Japan and the Eurozone. Plus, the Reserve Bank of Australia and the Reserve Bank of [..]

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