Forex Previews

Forex News – Fed signals end to QE this year

Posted on July 10, 2014 at 11:23 am GMT

The Federal Reserve released minutes from its June 17-18 policy meeting on Wednesday, disappointing markets which were expecting are more hawkish tone and more details about when the Fed would begin to raise interest rates. The minutes indicated that the Fed will begin ending quantitative easing sooner than market expectations. October appears to be the most likely time period to end the monthly bond-buying program. At its June meeting the FOMC (Federal Open Market Committee) voted to reduce the program [..]

Forex News – China’s inflation rises at a slower pace

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

China’s inflation rate rose at a slower pace in June and below forecasts, as data on Wednesday showed the consumer price index (CPI) rose 2.3 percent in June from a year earlier, missing the market forecast of 2.4 percent. Signs of cooling in the world’s second largest economy suggest some weakness lingering in the economy and could push the Chinese government to launch more stimulus measures. Such measures could include policy easing in the way of an interest rate cut, [..]

Forex News – Sterling drops on negative industrial output surprise

Posted on July 8, 2014 at 12:30 pm GMT

The news that UK industrial output dropped by 0.7% month-on-month came as a negative surprise to foreign exchange markets, which had recently become used to stronger-than-expected data out of Great Britain. Economists had been expecting an increase of 0.2%, whereas the rise in the previous month was 0.4%. Still, the year-on-year increase was a respectable 2.3%. With respect to manufacturing, which excludes the output of certain utility industries as well as mining and quarrying, the monthly drop was an even [..]

Forex News – Swiss unemployment steady while reserves post increase

Posted on July 7, 2014 at 1:20 pm GMT

The news that Swiss unemployment dropped to 2.9% unadjusted for seasonal effects or stayed constant at 3.2% when seasonally adjusted, was right in line with economists’ expectations. The data has been part of a pattern that shows that unemployment in Switzerland has remained more or less steady for the past year or so. Previously, Swiss unemployment was in a gentle uptrend as it rose from 2.7% in 2011 to 3.2% in 2013. Growth is expected to come in at a [..]

Forex News – Week ahead focus on Chinese inflation, Bank of England, Fed minutes and Australian employment

Posted on July 4, 2014 at 12:20 pm GMT

The coming week will be a relatively quiet one for the major currencies of the US dollar and the euro. The focus will be on China, the UK and Australia, but the data from these countries is not expected to have too broad a market impact – with the possible exception of the Chinese releases’ impact on risk sentiment. Following the crucial employment report for June in the United States the week that just passed, the most important events of [..]

Forex News – ECB and market await implementation and impact of June decisions

Posted on July 3, 2014 at 2:43 pm GMT

The ECB meeting today was pretty much a non-event in terms of policy changes, since no one expected any new measures to be announced. The key task of the ECB for now is to implement the existing measures that were announced back in the June meeting. For example, as far as the long-term liquidity operations that are scheduled after the summer (the TLTROs), the ECB published a series of guidelines of how they will function and their rules of operation. [..]

Forex News – Commodities and bonds top stocks as best performers of the first half

Posted on July 2, 2014 at 12:49 pm GMT

The end of the second quarter is usually a good chance for investors to check their investment performance versus their benchmarks and the market. In addition, such performance data helps to understand the current financial environment and what the big trends in asset prices are. As the chart shows, the best performing asset during the first 6 months of the year is the precious metal gold. Gold was up by more than 10% since the beginning of the year, but [..]

Forex News – Reserve Bank of Australia holds rates, aussie climbs higher

Posted on July 1, 2014 at 11:28 am GMT

The policy-setting meeting of the Reserve Bank of Australia resulted in a no-change decision, exactly as all analysts expected. The key rate stayed at 2.50%, which is the lowest interest rate in modern Australian history. The rate was lowered to 2.50% back in late summer of 2013. The outlook for monetary policy in Australia is stable for the foreseeable future as no interest rate changes are expected until well into 2015. It appears that the Australian economy has some forces [..]

Forex News – Eurozone June flash inflation steady, helping ECB to stay the course

Posted on June 30, 2014 at 10:51 am GMT

The news that Eurozone inflation was steady at 0.5% during June, in line with economists’ expectations, was something that will help the ECB to stay the course. If inflation had come in lower at 0.4% or 0.3%, it could have proved embarrassing for the ECB, as it would have piled on the pressure to do even more to fight the possibility of deflation. Such pressure would follow its decisions earlier in the month to cut interest rates, drive the deposit [..]

Forex News – ECB meeting, Eurozone and nonfarm payrolls to dominate next week

Posted on June 27, 2014 at 12:34 pm GMT

Next week will be relatively busy for foreign exchange markets because of central bank meetings as well as key economic data such as Eurozone inflation and unemployment in the United States. Starting with the euro, the European Central Bank will meet on Thursday, July 3 and the meeting will be followed by the press conference of ECB President Mario Draghi. Given that some of the major decisions of the previous meeting have not yet been implemented, Draghi is expected to [..]

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