Forex Previews

Forex News – ECB’s Draghi keeps rates but promises to add liquidity through ABS, TLTROs

Posted on October 2, 2014 at 1:59 pm GMT

The ECB meeting more or less met expectations today by keeping the key refinancing interest rate unchanged at 0.05% and by setting out the plan for asset purchases. According to Draghi’s introductory statement to the press conference, covered bond purchases would start during the second half of October, while purchases of Asset Backed Securities will take place during the fourth quarter of 2014 – presumably after the beginning of the covered bond purchases. The program will last for at least [..]

Forex News – Weak Eurozone PMI data weaken euro ahead of ECB

Posted on October 1, 2014 at 9:51 am GMT

The euro dropped after data showed manufacturing growth in the Eurozone slowed further in September. The data come after Tuesday’s preliminary inflation slowed in September to just 0.3%. Weak data intensify pressure on the European Central Bank to take more easing measures. The ECB holds its policy meeting on Thursday. While the consensus view is for no fresh action tomorrow, the euro is expected to remain under pressure after today’s weak data. A survey compiled by Markit in September showed [..]

Forex News – Mixed economic data to keep pressure on Bank of Japan, yen

Posted on September 30, 2014 at 10:31 am GMT

A whole range of Japanese economic releases on Tuesday painted a mixed picture of the country’s economy. Industrial output and household spending were disappointing while unemployment and retail sales were better-than-expected. Starting with industrial output, it dropped 1.5% month-on-month during August, compared to consensus expectations of a 0.2% rise and a 0.4% increase during July. It remains to be seen whether the recent weakness in the yen (dollar / yen dropped by around 7% during the third quarter) will be [..]

Forex News – US second quarter growth revised up; dollar continues to steamroll higher

Posted on September 29, 2014 at 10:49 am GMT

News that US second quarter growth was revised up to 4.6% was welcome news for US dollar bulls, as it showed that the US economy bounced back strongly from the shock 2.1% contraction of the first quarter. The second quarter featured the best growth of the past 10 quarters, while several one-off factors seemed to have depressed growth during the beginning of the year. The revision from 4.2% to 4.6% was in line with economists’ consensus expectation. The good news [..]

Forex News – Weekly Outlook – US nonfarm payrolls, PMIs and ECB all in focus

Posted on September 26, 2014 at 12:57 pm GMT

All eyes will be on US nonfarm payrolls which are due on Friday as US employers are expected to have accelerated hiring in September and the unemployment rate is forecast to stay steady 6.1%, matching the lowest level since 2008. Nonfarm payrolls are expected to rise to 195,000 this month compared to August’s 134,000. Also from the US, final manufacturing and services PMI releases will be closely watched to gauge how the world’s largest economy is doing. The ISM index [..]

Forex News – Bank of England closer to hiking rates: Carney

Posted on September 25, 2014 at 2:03 pm GMT

In a speech on Thursday in Wales, Bank of England Governor Mark Carney said the Bank is getting closer to raising interest rates. Carney mentioned that the UK’s economic outlook was much improved, and a rate rise was only a matter of time. He did however mention that the exact date will depend on economic data. “The point at which interest rates … begin to normalize is getting closer,” Carney said. “In recent months the judgement about precisely when to raise [..]

Forex News – German business confidence weighed by geopolitical risks, struggling Eurozone growth

Posted on September 24, 2014 at 9:40 am GMT

The German Ifo report was released on Wednesday, showing a drop that was more than analysts forecast in September. The report is compiled by surveying 7,000 German firms which are asked to rate the relative level of current business conditions and expectations for the next 6 months. The Ifo index showed that business confidence in Germany fell as economic and political risks in the Eurozone increased. The gauge slipped to 104.7 in September from 106.3 in August. This was more [..]

Forex News – Markit PMI shows slower Eurozone business activity

Posted on September 23, 2014 at 2:22 pm GMT

Business activity in the Eurozone expanded slower- than- expected in September according to data on the Purchasing Managers Index on Tuesday. The Markit Composite Flash PMI dropped to a 9-month low of 52.3, missing expectations for it to remain flat from August’s 52.5. However the index was above the 50 mark that separates growth from contraction and has been since July 2013, so this was encouraging, although the softer data could disappoint the European Central Bank. Meanwhile the manufacturing PMI [..]

Forex News – Euro falls to new 14-month low as Draghi talks of taking new measures

Posted on September 22, 2014 at 3:07 pm GMT

European Central Bank President Mari Draghi appeared before the European Parliament’s economic and monetary affairs committee on Monday and spoke about the Eurozone economic recovery and the inflation outlook. Draghi pointed out that the central bank “remains fully determined to counter risks to the medium-term outlook for inflation”. He reiterated hat the ECB stands ready to use additional “unconventional tools to spur inflation and growth”. Soft inflation in the Eurozone has been a concern lately as the headline rate fell [..]

Forex News – Week Ahead – Series of PMI data to be watched

Posted on September 19, 2014 at 9:48 am GMT

The week begins with ECB President Mario Draghi speaking before the European Parliament’s economic and monetary committee in Brussels. Following this, markets will focus on data from the United States on existing home sales, which are forecast to show an increase for a fifth straight month in August. On Tuesday China will be in focus as the HSBC and Markit surveys will show a preliminary reading of Chinese manufacturing Purchasing Managers Index (PMI) for September. The PMI index fell to [..]

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