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Forex News – BoJ eases to fight deflation

Posted on October 31, 2014 at 12:49 pm GMT

For the first time in over a year and a half, the Bank of Japan decided to launch another round of stimulus measures, known as quantitative easing. After concluding its monetary policy meeting on Friday, the Japanese central bank announced it would raise its monetary base target to an annual increase of 80 trillion yen from 60-70 trillion yen. The reason behind the BoJ’s move today was to combat risks of deflation, as the Bank was concerned that its 2% [..]

Forex News – Dollar firms as Fed ends QE, sees improving US labor market

Posted on October 30, 2014 at 11:05 am GMT

The Federal Reserve concluded its 2-day policy meeting on Wednesday with a surprisingly upbeat statement by the FOMC (Federal Open Market Committee). The US central bank announced that its stimulus program of bond purchases will stop at the end of October, as was widely expected by the markets. What was not expected was the more hawkish tone in the statement as it showed that the Fed had more confidence in the US economy and did not seem too bothered about [..]

Forex News – US durable goods orders slip in September to 8-month low

Posted on October 28, 2014 at 3:01 pm GMT

US durable goods order recorded their biggest drop in eight months in September, worrying markets that the pace of economic growth in the world’s largest economy is unstable. Durable goods which include big-ticket items that last at least three years, (ranging from toasters to aircraft) , fell 1.3% in September despite forecasts for a 0.5% rebound. In August durable goods orders fell 18.3%. That was the largest decline in the so-called core capital goods since January of this year. A [..]

Forex News – ECB stress tests paint positive picture of Eurozone banks

Posted on October 27, 2014 at 11:19 am GMT

The main market news item over the weekend was the release of the stress test results conducted by the European Central Bank for 130 banks across Europe. The stress tests used data from the end of 2013 and since then a number of banks has moved to raise fresh capital in the markets. Although 25 out of the 130 failed the test or about 1 in 5, the size of the capital shortfall was ‘only’ 25 billion euros. As the [..]

Forex News – Week ahead: Fed meeting towers over other data releases and events

Posted on October 24, 2014 at 10:12 am GMT

Central bank meetings in the US, New Zealand and Japan are expected to be the highlights of next week as economic data releases may take a second seat. The German IFO survey, Japanese inflation numbers and advance US 3rd quarter GDP will be key. One interesting statistic for the Eurozone will be the release of the German IFO business confidence survey for October. In light of the forecast-beating Markit PMI survey of the past week, the IFO is expected to [..]

Forex News – Eurozone manufacturing continues to expand, helps euro to contain losses

Posted on October 23, 2014 at 12:11 pm GMT

News that Markit PMI business confidence numbers were better-than-expected provided a much-needed boost for the weakening euro today. The flash (preliminary) composite index for the Eurozone rose to 52.2 in October compared to 52 the previous month and beat analyst expectations it was going to dip to 51.5. This went against the image that has been gaining ground in the markets that the Eurozone was slowing down so much that recession was just around the corner. With respect to the [..]

Forex News – Australian inflation likely to keep RBA on the sidelines for now

Posted on October 22, 2014 at 12:48 pm GMT

Australian inflation for the third quarter was announced today and it showed a slowdown to 2.3% from the previous quarter’s 3.0% inflation peak. 2.3% was also the inflation rate expected by economists. Australian inflation has moved around a fair amount during the past 5 years, with a peak of 3.5% and a trough of 1.2%. One adjusted measure of Australian inflation was actually lower than expectations. The so-called “trimmed mean CPI” calculated by the country’s central bank fell to 2.5% [..]

Forex News – Chinese growth slows a touch but beats expectations

Posted on October 21, 2014 at 1:17 pm GMT

China, as the world’s second largest economy, is particularly important for the health of the global economy. Given the worries about a possible global economic slowdown – particularly in countries and regions like the Eurozone and China – Chinese GDP data for the third quarter became particularly important. In the event, the Chinese data was not so bad, as despite indicating a slower growth rate, they exceeded expectations. More specifically, the year-on-year growth rate for the third quarter was 7.3% [..]

Forex News – American consumer sentiment strongest in 7 years according to survey

Posted on October 20, 2014 at 2:26 pm GMT

The US dollar rallied above the important technical level of 106.00 yen on Friday after being boosted by an upbeat American consumer sentiment report. The closely watched University of Michigan/ Thomson Reuters index on consumer sentiment in October rose to the highest in more than 7 years to 86.4. This was above forecasts for a drop to 84.1 from September’s 84.6 reading. The data for the sentiment survey was collected between September 25 and October 15. The markets responded positively [..]

Forex News – Week Ahead: Chinese growth, US inflation and Eurozone business surveys on tap

Posted on October 17, 2014 at 12:24 pm GMT

There will be some interesting economic data releases during the previous week, which could determine whether worries about global growth will intensify or calm down. Chinese 3rd quarter growth and flash Eurozone Purchasing Managers’ surveys for October will be key, while UK 3rd quarter GDP and inflation in the United States will also be looked at. Chinese GDP comes out on Tuesday, October 21, and the expectation is for a year-on-year growth rate of 7.4% – very close to the [..]

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