Forex Previews

Forex News – RBNZ knocks kiwi down from attempt to challenge 30-year high

Posted on July 24, 2014 at 9:45 am GMT

The Reserve Bank of New Zealand meeting on Thursday, 24 July, had a negative effect on the kiwi or the New Zealand dollar. Although there was a rise in interest rates, the statement by Governor Graeme Wheeler was more dovish than expected. In more detail, the RBNZ raised the official interest rate for the fourth time this year to 3.50%. The Official Cash Rate (OCR) was at 2.50% back in March. This move was in accordance with market expectations and [..]

Forex News – US core inflation for June comes in soft, fails to boost US dollar

Posted on July 23, 2014 at 8:53 am GMT

The US inflation report for June was not particularly exciting news, as the figures more or less met expectations. Headline inflation came in at 0.3% month-on-month and 2.1% year-on-year; right in line with forecasts. Core inflation however, which excludes volatile food and energy prices, was slightly below expectations as it came in at 0.1% month-on-month and 1.9% year-on-year (0.2% and 2.0% respectively was what was expected). Furthermore, higher gasoline prices were responsible for 0.2% of the 0.3% month-on-month rise of [..]

Forex News – Geopolitical risk and its impact on the markets

Posted on July 22, 2014 at 10:03 am GMT

Some serious negative geopolitical events have been influencing markets during the past few weeks and months and geopolitics is fast becoming a factor that investors must pay close attention to. The crisis in Ukraine has proved a focal point during 2014, as markets gyrate from unease to calm over events such as the annexation of Crimea by Russia, the fighting in Eastern Ukraine, the withdrawal of Russian troops from the border between Russia and Ukraine and sanctions imposed by Europe [..]

Forex News – Canadian inflation higher than expectations but loonie rally not sustained

Posted on July 21, 2014 at 12:44 pm GMT

The news that Canadian inflation during June was higher-than-expected showed that inflation in the country was picking up more than perhaps the Bank of Canada would like. Year-on-year headline inflation climbed to 2.4% compared to expectations of a 2.3% rise. 2.3% was the inflation rate of the previous month. The core rate, which excludes the more volatile price categories such as food and energy, rose by 1.8% year-on-year compared to expectations of a 1.7% rise. It was the highest inflation [..]

Forex News – Week Ahead – PMIs will be the main focus

Posted on July 18, 2014 at 10:05 am GMT

In the coming week economic data will focus on PMIs (Purchasing Managers Index) from various countries. Starting with the Eurozone, PMIs will be released on Thursday, with focus being on the larger Eurozone economies of Germany and France. All surveys will be flash readings from Markit on both manufacturing and services PMIs and tend to have more impact than the final readings. PMI data are important to watch as they can sometimes have a strong impact on the euro. The [..]

Forex News – Janet Yellen’s 2-day testimony boosts dollar to near 1-month high

Posted on July 17, 2014 at 1:42 pm GMT

The semi-annual testimony of Fed Chair Janet Yellen on monetary policy was an interesting event that helped to clarify the Federal Reserve’s views on the economy and interest rates going forward. The appearances over two days of Yellen first before the Senate and secondly before the House of Representatives, gave some very useful insights into the Fed’s thinking. Firstly, the most important message for markets is that the Fed remains convinced that loose monetary policy is still appropriate, in that [..]

Forex News – Sterling drops after poor UK wage growth numbers

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

Sterling weakened after UK employment data released on Wednesday. Despite the official unemployment rate falling to its lowest level since late 2008 in the three months to May, the focus was on wages. The jobless rate fell to 6.5% from 6.6 % a month earlier but wage increases missed estimates and came in weaker-than-expected, remaining near 2009 lows, giving evidence that wages lagged inflation. In the three months through May, total wages (including bonuses) rose a yearly 0.3%, below forecasts [..]

Forex News – Bank of Japan remains upbeat on inflation resulting in steady yen

Posted on July 15, 2014 at 10:53 am GMT

The Bank of Japan’s latest meeting delivered few surprises and hence mostly reaffirmed what the market knew already. The Bank left its monetary stimulus unchanged at a pace of 60-70 trillion yen a year. This has led to 10-year yields on Japanese Government Bonds dropping t0.54%. The Bank’s forecast that inflation would reach 1.9% during the year starting in April 2015 was unchanged from its previous meeting. This meant that the chances of additional stimulus during the year have diminished. [..]

Forex News – Market shrugs off Banco Espirito Santo woes due to limited risk of contagion

Posted on July 14, 2014 at 1:11 pm GMT

The news of financial problems at the holding company that belongs to the founding family of Portugal’s largest listed bank, sent shockwaves through markets during the previous week. Specifically, the largest shareholder of Banco Espirito Santo, the Espirito Santo Group, faced problems with some of its bond repayments. This sparked speculation that the bank had exposure to the troubled group that would in turn lead to substantial losses. There was also the possibility that the bank would face legal challenges [..]

Forex News – Week Ahead Focus on Yellen, Draghi and Carney

Posted on July 11, 2014 at 1:21 pm GMT

The coming week will be busier in terms of economic data releases compared to the past week, as there will be important speeches from central bankers, including Yellen, Draghi and Carney. Starting with the euro, the most important events of the week ahead for the currency will be a speech by European Central Bank President Mario Draghi on Monday. There will also be Industrial Production data that day although Tuesday’s German ZEW Economic Sentiment will be more important to watch. [..]

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