Forex Previews

Swiss Franc rises after SNB maintains negative rates

Posted on September 17, 2015 at 9:53 am GMT

At its quarterly policy meeting on Thursday, the Swiss National Bank left the target range for the three-month LIBOR unchanged, between −1.25% and – 0.25%. The interest rate on sight deposits with the SNB remains at –0.75%. These rates were in line with expectations and the Swiss Franc strengthened after the announcement. In reaction to the news, the euro dropped to 1.0945 francs after having reached a high of 1.0976. The dollar fell to 0.9666 from 0.9718 francs. In a [..]

US inflation in line with estimates rounds up Fed’s economic picture

Posted on September 16, 2015 at 2:09 pm GMT

The release of US inflation for August rounded up the key indicators that the Federal Open Market Committee will have in front of it when deciding on whether to raise interest rates tomorrow. The main numbers were roughly in line with expectations, with only core inflation year-on-year slightly below what was expected. The year-on-year headline inflation rate was 0.2%, which confirmed the absence of inflation pressures in the economy. The core inflation rate came in much higher at 1.8%. While [..]

Sterling rallies on strong wage growth numbers

Posted on September 16, 2015 at 10:06 am GMT

Sterling received a boost after an upbeat UK employment report that showed the jobless rate unexpectedly fell and private-sector earnings rose at their fastest pace in six years. This suggests that the economic recovery is picking up pace. After the data was released at 08:30 GMT, the pound rallied to 1.5419 by 10:00 GMT, up from a pre-data low of 1.5329. The ILO unemployment rate fell to 5.5% in the three months to July, compared to 5.6% in the three [..]

US August retail sales show consumer on track

Posted on September 15, 2015 at 2:16 pm GMT

Source: TRADINGECONOMICS.COM The retail sales report for August contained few surprises and overall did little to sway opinions regarding the Fed’s crucial rate decision on Thursday. Headline retail sales missed expectations by a narrow margin as they came in at 0.2% compared to 0.3% expected. Compensating however was an upward revision in July’s increase to 0.7% from 0.6% originally reported. It appears that the retail sales miss on a headline level had more to do with the drop in [..]

Forex News – Yen rallies after Bank of Japan keeps stimulus at 80 tln yen

Posted on September 15, 2015 at 10:05 am GMT

The Bank of Japan kept its current loose monetary policy on hold today despite weak Japanese economic data over recent weeks. This means that the Bank’s annual asset-buying scheme worth 80 trillion yen remains unchanged. Some analysts had expected further policy easing given that data showed Japan’s economy shrank 0.3% in the three months to June. In addition there were concerns over a slowdown in China and an impending rate hike in the US. Despite these worries, the Bank was [..]

China’s industrial output misses forecasts, raising concern over health of economy

Posted on September 14, 2015 at 10:19 am GMT

Data out of China over the weekend suggest that the economic slowdown is deepening in the world’s second largest economy, thereby increasing the chance of more stimulus. On Sunday, data showed China’s factory output and fixed-asset investment were both weaker-than-expected in August. While retail sales were the bright spot, overall it could be seen that the Chinese economy faces headwinds and that the foundation for high economic growth is not solid. This puts pressure on the government to seek further stimulus [..]

Week Ahead – All eyes on FOMC meeting; crucial inflation and retail sales data before then

Posted on September 11, 2015 at 12:00 pm GMT

It will be a nervous start to the week for investors as markets anxiously await the Fed’s policy meeting decision next Thursday. Mixed US economic data and global economic uncertainty have kept markets guessing as to whether the Fed will raise rates next week. Recent events have lowered expectations of a rate hike but Fed policymakers have kept the door open. Before then, there is plenty to keep the markets busy with key data out of China and the Bank [..]

BoE sees increased downside risks but says too early to revise outlook; pound jumps

Posted on September 10, 2015 at 1:40 pm GMT

The Bank of England’s Monetary Policy Committee (MPC) kept interest rates at 0.50% as expected on Thursday at its latest meeting. The MPC voted 8-1 in favour of keeping rates at the record low level. One member, Ian McCafferty, voted to raise rates by 25bps, maintaining his stance from the August meeting when he was also the only member to argue for a rate rise. In the minutes, the Bank made no changes to its outlook for inflation, having recently [..]

RBNZ cuts rates by 0.25% and signals more cuts, sending kiwi plunging

Posted on September 10, 2015 at 10:34 am GMT

The Reserve Bank of New Zealand (RBNZ) cut rates for the third time at its third consecutive policy meeting on Thursday. The move, which was widely expected by economists, saw the official cash rate lowered to by 25 bps to 2.75%. This follows two cuts of 0.25% each in June and July. A slump in global dairy prices, the country’s main export, and weakening overseas demand have sharply deteriorated the outlook for New Zealand’s economy since the start of the [..]

Pound slides after weak UK manufacturing and trade data

Posted on September 9, 2015 at 11:22 am GMT

It was another bad month for UK industry in July as output fell by 0.4% month-on-month against estimates that it would increase by 0.1%. Manufacturing production fell by an even larger amount, dropping by 0.8% on the month, against estimates of a 0.2% rise. Year-on-on year, manufacturing output turned negative, falling by 0.5%, but total industrial production was still up on the year, rising by 0.8%. A 6.7% jump in mining and quarrying output contributed to the slightly better performing [..]

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