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Forex News – Fed mixed message boosts dollar to new highs vs yen, euro

Posted on September 18, 2014 at 11:45 am GMT

The Federal Reserve’s Open Market Committee meeting on September 16 / 17 resulted in few major changes, revisions or fresh policy announcements. Yet, dollar bulls saw the meeting’s outcomes as another step towards eventual policy tightening and a confirmation that US monetary policy will significantly diverge from that of other major central banks in the next 18 months. First of all, the committee decided to taper the Quantitative Easing program by an additional 10 billion dollars to 15 billion dollars. [..]

Forex News – Sterling lifted by fall in UK unemployment

Posted on September 17, 2014 at 11:51 am GMT

UK unemployment data released today showed that Britain’s labour market and overall economic recovery remains steady. The jobless rate fell to the lowest in 6 years and by much more than economists had forecast. The ILO unemployment rate fell to 6.2% between May and July, which was the lowest level since the September-November period of 2008, compared to expectations for the rate to fall to 6.3%. The number of jobless in the quarter fell 146,000 to just over 2 million [..]

Forex News – UK inflation in line with forecasts, sterling stable

Posted on September 16, 2014 at 10:11 am GMT

Sterling was given a slight boost after the headline UK inflation figure came in line with forecasts. As expected by economists, CPI rose 1.5% year-on-year in August, the lowest increase since May, compared with 1.6% in July. According to the Office of National Statistics (ONS) on a month-on-month basis, inflation rose 0.4% in August – also in line with expectations, after falling 0.3% month-on-month in July. Part of the contribution to the decline in the overall inflation rate has been [..]

Forex News – Weak Chinese factory output spark fears of hard landing

Posted on September 15, 2014 at 10:12 am GMT

The world’s second-largest economy may be at risk of a sharp economic slowdown as data released on Sunday show that Chinese factory output in August grew at the slowest pace in nearly six years compared to a year ago. The main catalyst to the weakening in growth is due to a slowing down in the country’s property sector. The cooling housing market has resulted in a trickle-down effect to other sectors in the economy such as the cement and steel [..]

Forex News – Week Ahead – Scottish vote and FOMC highlights of the week

Posted on September 12, 2014 at 11:42 am GMT

The main highlight of next week will be the Scottish referendum. Markets will focus on the outcome of the vote for independence on September 18th. Polls in the last two days have shown that supporters of staying in the Union have managed to gain a lead ahead of the “Yes” campaign that is pro-independence. A YouGov poll for The Times and Sun newspapers showed today that the “NO” campaign has regained a 4-point lead over the separatists. According to the [..]

Forex News – Forecast-beating Australian jobs report boosts aussie

Posted on September 11, 2014 at 9:55 am GMT

The Australian dollar surged by as much as half a US cent early today in reaction to an upbeat Australian employment report which further reduced any chance of a cut in interest rates by the Reserve Bank of Australia. The unemployment rate fell to 6.1% and reversed most of July’s unexpected jump to 6.4%. Expectations were for a drop to 6.3%. The number of new jobs created in August rose by the most in about 30 years by 121,000, beating [..]

Forex News – Carney hints BoE will hike rates in early 2015 as UK labour market recovers

Posted on September 10, 2014 at 9:20 am GMT

Sterling got a bit of a reprieve from its recent decline after Bank of England Governor Mark Carney’s speech on Tuesday to UK trade unions. The central bank chief signaled that UK interest rates could rise as early as the spring of 2015 if the labour market recovers. In the last BoE policy meeting in August, two out of the nine Monetary Policy Committee members voted for a rate rise, indicating a start in the shift in the trend which [..]

Forex News – Fed paper suggests underestimation of pace and level of future rate hikes

Posted on September 9, 2014 at 12:40 pm GMT

News that a research paper from the Federal Reserve Bank of San Francisco found that markets and the public seem to have lower expectations with respect to interest rate increases compared to the Fed Board members themselves, helped the dollar to climb against its major counterparts. The research utilized data from interest rate futures, from economist surveys and other market data and this was set against the quarterly interest rate outlooks of the FOMC participants. According to the paper, while [..]

Forex News – US August nonfarm payrolls’ disappointment seen as one-time miss

Posted on September 8, 2014 at 11:56 am GMT

News on Friday that the change in August nonfarm payrolls was below expectations was a surprise as the labor market had shown consistent strength in delivering new jobs over 200 thousands monthly for six straight months. Therefore, news that the number of new positions created was just 142 thousand against expectations of 225 thousand was a negative surprise. There were also some negative decisions during the previous months. However, there was some suspicion that one-off factors were at work. For [..]

Forex News – Week ahead: Chinese trade and inflation, New Zealand rates and US retail sales to dominate

Posted on September 5, 2014 at 12:16 pm GMT

Next week will definitely be a bit of an anti-climax given the really important ECB meeting and US employment report of the week that just passed. Data out of China, Australia and the United States will be complemented by the monetary policy decision by the Reserve Bank of New Zealand. Starting with the US dollar, the absence of major events and economic releases until Friday’s advance retail sales report for August, may cause a pause in the dollar’s rally as [..]

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