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Forex News – Bank of Japan keeps policy steady while Kuroda hints at yen weakness

Posted on September 4, 2014 at 12:36 pm GMT

The Bank of Japan kept its policy unchanged today, with zero interest rates and a quantitative easing program of 60-70 trillion yen annually (570-670 billion dollars). Governor Kuroda sounded upbeat about the economy’s prospects, both with respect to economic growth as well as inflation. He was optimistic that a recovery in jobs and incomes would help the economy overcome the second quarter weakness when the sales tax was raised from 5% to 8%. However, given some recent weakness in household [..]

Forex News – Ukraine conflict and Scottish Independence vote are key risks for FX markets

Posted on September 3, 2014 at 12:12 pm GMT

Financial markets and foreign exchange markets more specifically are usually preoccupied with economic statistics and monetary policy decisions and intentions. Occasionally however, important political events such as elections and geopolitical developments such as wars and conflicts, can have an important bearing on markets. The Scottish Independence referendum and the conflict in Ukraine are two examples of such events that can have an important influence on markets. Starting with the conflict in Ukraine between the government and pro-Russian rebels, the economic [..]

Forex News – Reserve Bank of Australia meeting holds rates, raps aussie strength

Posted on September 2, 2014 at 1:04 pm GMT

The scheduled meeting of the Reserve Bank of Australia ended as expected with interest rates unchanged at 2.50%. More interesting was the statement by the RBA Governor Glenn Stevens. In a sense Stevens did not say anything much different than his previous week’s semi-annual testimony, in which he laid the case for keeping interest rates at the 2.50% record low for an extended period of time. Low interest rates or “monetary accommodation” as central bankers like to say, will likely [..]

Forex News – Chinese manufacturing business surveys show pullback from highs

Posted on September 1, 2014 at 9:17 am GMT

Two surveys today showed that China’s manufacturing sector is decelerating somewhat. The official National Bureau of Statistics number for August fell to 51.1 from 51.7 the previous month. Economists were expecting a number around 51.2. The HSBC Manufacturing PMI, dropped to 50.2 from 50.3 initially reported. The HSBC index has a smaller sample but it includes mainly private companies and also includes relatively more medium-sized and small-sized entities. The fact that the HSBC survey has a lower score than the [..]

Forex News – Week ahead: High drama for euro and dollar because of ECB and nonfarm payrolls

Posted on August 29, 2014 at 1:40 pm GMT

The coming week, which also marks the beginning of autumn, will feature the key meeting from the European Central Bank as well as the all-important release of the US employment report for August. Other important data and events include Chinese business surveys, the Reserve Bank of Australia decision on rates and statement as well as monetary policy decisions from Canada, the UK and Japan. The highlight of the week will be the European Central Bank Governing Council meeting and the [..]

Forex News – Eurozone economic morale worsens in August to 8-month low

Posted on August 28, 2014 at 11:23 am GMT

A slew of data from the Eurozone today were not very inspiring as they did not provide optimism for the region’s economic recovery. Economic sentiment surveys for the 18 countries in the euro-area were overall soft. According to the European Commission, economic morale in August was the worst since December 2013, falling more-than-expected to 100.6 from a previous revised 102.1 in July. Forecasts for the index were for a drop to 101.5. A main catalyst for the decline was a [..]

Forex News – US economy on positive track according to durable goods, consumer confidence

Posted on August 27, 2014 at 1:53 pm GMT

The latest data from the US economy released on Tuesday was moderately positive and they showed that both business investment and consumer confidence were broadly on track. This benefited the US dollar and strengthened the existing arguments that the dollar’s rally may have further to run. Starting with durable goods orders, the headline number jumped by 22.6% month-on-month, crashing expectations of a 7.5% rise. The main reason for this outsized gain was various airplane orders received by Boeing following a [..]

Forex News – US equity benchmark S&P 500 crosses landmark 2K level

Posted on August 26, 2014 at 12:24 pm GMT

The news that the US stock market benchmark index of the 500 largest companies by market capitalization hit the 2,000 level was a significant milestone for the bull market in equities. This marks a remarkable turnaround from the infamous 666 low hit by the S&P 500 in March of 2009. The new all-time record for US stocks is an indication that risk sentiment remains quite positive and it should be noted that US equities have outperformed most other developed market [..]

Forex News – Yellen, Draghi and Kuroda guide US dollar higher in Jackson Hole

Posted on August 25, 2014 at 1:37 pm GMT

The annual monetary policy symposium in Jackson Hole, Wyoming, hosted by the Kansas Federal Reserve, is a chance for the world’s leading monetary policymakers to exchange views in an idyllic setting as well as to float some ideas about future policy. The most keenly awaited speech was the one by Fed Chair Janet Yellen. However, Yellen’s speech did not contain a lot surprises. Yellen acknowledged the improvement in the US economy and labor market, but also cited a whole host [..]

Forex News – Week Ahead: String of US data to watch for

Posted on August 22, 2014 at 2:48 pm GMT

After this week’s highlight event at Jackson Hole, the markets’ focus next week will remain on the United States where a series of important data will be released, including growth numbers. On Monday, the US will release Commerce Department will releases figures for new home sales, which are forecast to show a rebound in July. On Tuesday, durable goods orders are due. Thursday will be important as the second estimate of gross domestic product (GDP) for the three-month period will [..]

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