Forex Previews

Forex News – Japanese inflation highest in 23 years as a result of tax hike

Posted on May 30, 2014 at 9:47 am GMT

Japanese inflation for April – as represented by the Core Nationwide Consumer Price Index – slightly exceeded expectations by coming in at 3.2% compared to 3.1% expected by economists. This gave the yen a boost, despite the prevailing positive risk sentiment which tends to depress the safe haven Japanese currency. Core prices exclude volatile fresh food items, but they include fuel and energy. Japan increased its sales tax from 5% to 8% in April, which according to the Bank of [..]

Forex News – US 1st quarter revision negative but it looks in the rear-view mirror

Posted on May 29, 2014 at 2:09 pm GMT

The news that the US economy contracted by a 1% annualized rate during the first quarter was negative but it had little influence on financial markets. The estimate compared to a 0.5% contraction expected by economists while the initial estimate was an expansion of 0.1%. It was the worst growth performance for the US economy since the first quarter of 2011. There were some special one-off factors that drove growth to such a low level during the first quarter and the US [..]

Forex News – Economic indicators improving but will the Fed take note?

Posted on May 28, 2014 at 11:30 am GMT

The latest economic figures out of the United States have shown a generally positive picture for the world’s economy. Figures on manufacturing orders and consumer confidence as well as rising home prices, provide support for the case of a pickup in growth for the rest of the year after a dismal first quarter because of the weather-related slowdown. Durable goods orders came in stronger-than-expected rising by 0.8% month-on-month compared to analyst expectations of a 0.5% drop. The forecasted drop had [..]

Forex news – The ECB’s next move and the effect on the euro

Posted on May 27, 2014 at 1:17 pm GMT

Much of the focus in foreign exchange markets is currently on the European Central Bank and what it will do when it meets on Thursday, June 5 in Frankfurt. Prior to this meeting and in the press conference that followed the May 8 ECB council, the bank’s President Mario Draghi stated that the Governing Council was “comfortable with acting next time”. This in turn led to a sharp drop in the euro, which was slated before the meeting to cross [..]

Forex News – European elections show rise of extreme parties, eurosceptics

Posted on May 26, 2014 at 9:56 am GMT

The European elections of May 22-25 were held in order to elect to the 751 members of the European Parliament; the legislative body of the European Union. The European Parliament’s powers have increased recently, as it will elect the Commission President, but it is perceived to be much less influential compared to national parliaments and the European Council of heads of state. The elections were about the impact economic stagnation and high unemployment would have on Europe’s politics. The results [..]

Forex News – Weekly Review – FOMC minutes, PMIs from China, Eurozone and US grabbed attention

Posted on May 23, 2014 at 12:39 pm GMT

The past week was filled with important data from all corners of the global economy, stemming from the US China, Europe and the UK. On Wednesday the markets turned their focus towards the FOMC minutes. The dovish tone of the minutes was reflected in the dollar which fell following their release. The minutes showed that the Fed looked at an exit strategy from stimulus. Other than that, nothing new was revealed and the view remains that the Fed will continue [..]

Forex News – Chinese manufacturing activity expands the most in 5-months

Posted on May 22, 2014 at 8:25 am GMT

Manufacturing activity in China showed signs of growth in May, helping lift risk appetite in markets today. The upbeat reading on China’s purchasing managers index (PMI) blunted some of the recent concerns of slowing growth in the world’s second-largest economy. A survey compiled by HSBC and Markit showed that a preliminary reading of the PMI rebounded in May to hit a five-month high of 49.7, up from 48.1 in April. The PMI indicator is designed to provide a snapshot of [..]

Forex News – Bank of Japan holds current policy while Japanese economy improves

Posted on May 21, 2014 at 8:52 am GMT

The Bank of Japan announced after concluding a two-day policy meeting today that it will continue with stimulus measures but refrained from adding additional quantitative easing measures. The central bank will continue with buying about 7 trillion yen of sovereign debt a month to expand the monetary base, citing that the current QE program has been working and expects the target inflation rate of 2% to be achieved. The Bank’s Governor Haruhiko Kuroda in a speech today expressed optimism on [..]

Forex News – UK inflation rises above-forecast but below BOE target

Posted on May 20, 2014 at 10:32 am GMT

UK headline inflation rose above-forecasts in April to an annual rate of 1.8 percent from 1.6 percent in March. The figure was below the Bank of England’s target rate of 2 percent but has moved off its lowest level in more than four years. Expectations were for a reading of 1.7 percent. The Easter holidays pushed up the cost of traveling, leading to higher airfares and other transport costs, including a stronger reading of fuel prices compared with a year [..]

Forex News – Euro under pressure as Draghi expected to take action

Posted on May 19, 2014 at 10:14 am GMT

The euro has fallen from more-than-2-year highs above 1.39 to test the 1.37 level. The main cause of the single currency’s recent weakness was due to growing expectations that the European Central Bank president will ease monetary policy in June after ECB President Mario Draghi said on May 8 that officials are “comfortable” with acting then. Draghi indicated that any worsening of the medium-term inflation outlook would warrant broad-based asset purchases. As a result, market participants are preparing for a [..]

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.

How can we help?

Live Chat Terms