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Forex News – Fed minutes cause dollar selloff because of dovish content

Posted on April 10, 2014 at 1:12 pm GMT

The release of the minutes from the March 19 meeting of the Federal Open Market Committee (FOMC) – the body responsible for setting monetary policy in the US – showed that members were keen to downplay fears of higher interest rates in coming years. This was contrary to the message the market got right after Janet Yellen’s press conference, in which she said that a reasonable time period between the completion of the tapering process and the first rate hike [..]

Forex News – QE and the euro: will the ECB decide to print and buy assets?

Posted on April 9, 2014 at 2:05 pm GMT

Perhaps the highlight of the previous week’s European Central Bank meeting and subsequent press conference by its President Mario Draghi was the news that the ECB council openly discussed the possibility of Quantitative Easing and it was unanimously agreed that QE or asset purchases was a tool that was available. The subject of QE had been one of contention and intense debate in previous years as the Bundesbank, the German central bank, was against such a tool to stimulate the [..]

Forex News – BOJ positive on Japan’s economic recovery, refrains from easing

Posted on April 8, 2014 at 12:15 pm GMT

The Bank of Japan offered nothing new in terms of whether it will adopt more stimulus in the near term after having maintained its current level of quantitative easing following a two-day policy meeting. While the BOJ was widely expected to continue with expanding its monetary base at a pace of 60 to 70 trillion yen ($681 billion) per year it did not signal that there will be further easing in the near-term. The Bank’s Governor Haruhiko Kuroda pledged to [..]

Forex News – German industrial output up for 4th consecutive month

Posted on April 7, 2014 at 12:38 pm GMT

Europe’s largest economy showed signs of strength in February as industrial output expanded by more-than-forecast. German industrial output rose 0.4% on a price, seasonally and working day adjusted basis according to provisional data of the country’s Federal Statistical Office released today. This beat estimates for a 0.3% increase and was the fourth straight month that output rose. A catalyst for the strong growth was a higher production of intermediate goods. Factories produced 1.3% more intermediate goods in February from January. [..]

Forex News – Week ahead: BoE and BoJ meetings, Fed minutes and Australian employment stats to dominate headlines

Posted on April 4, 2014 at 1:54 pm GMT

Following a relatively exciting week that contained the ECB meeting and the all-important US employment report, next week will likely be quieter. The Bank of England meeting on Thursday as well as Australian labor statistics earlier during the same day will likely be important events for sterling and the Australian dollar. The Fed latest meeting minutes on Wednesday will likely shed some more light on the Federal Reserve’s current thought process. With respect to the euro, there will be some [..]

Forex News –ECB keeps rates unchanged but Draghi hints at possible future options

Posted on April 3, 2014 at 1:43 pm GMT

The ECB decided to keep its key interest rates unchanged, with the marginal lending facility, refinancing and deposit facility rates at 0.75%, 0.25% and 0% respectively. That the ECB would keep its key rate constant was widely expected, but there had been some hopes that the ECB might take the deposit rate into negative territory. Therefore soon after the rate announcement, the euro did rise by about 15 pips – from 1.3755 to around 1.3770. During his press conference, ECB [..]

Forex News – ISM manufacturing PMI misses expectations but shows economy on track following cold weather

Posted on April 2, 2014 at 11:11 am GMT

The release of the ISM manufacturing index showed a further rebound during March, after previous significant improvement in February. January had witnessed a sharp drop in the index from 57 to 51.3, which had economists worried whether the US economy was going to dip into contraction territory. The headline index rose to 53.7 in March from 53.2 in February but missed expectations of a rise to 54.0. Therefore in the aftermath of the release, the dollar failed to gain and [..]

Forex News – Japan’s Tankan Index below forecast in Q1

Posted on April 1, 2014 at 1:41 pm GMT

Japan’s largest manufacturers saw an improvement in business sentiment in the first quarter to record the fifth straight quarter of improvement. The headline Tankan Index rose by one point from the previous quarter to + 17 but was slightly short of consensus of + 18. The yen weakened against the dollar to the lowest level in three weeks. The Bank of Japan report was released on the first day of a sales tax hike in Japan and the below-forecast reading [..]

Forex News – Soft Eurozone inflation briefly impacts euro, focus shifts to ECB meeting

Posted on March 31, 2014 at 11:05 am GMT

Inflation in the Eurozone fell more-than-forecast according to a flash estimate for March, reaching its lowest level in four years. Data released on Monday show that annual CPI fell from February’s 0.7% to 0.5% this month, the lowest since 2009 and far from the European Central Bank’s target of just below 2%. The disappointing data is raising speculation that the ECB will take some kind of action at its April 3 policy meeting. The ECB has to assess how much [..]

Forex News – Weekly Review – AUD outperforms, EUR falls as ECB mulls QE, USD looks to nonfarm payrolls

Posted on March 28, 2014 at 1:48 pm GMT

The main theme of the past week was central bankers rhetoric, driving currencies like the euro to three-week lows against the dollar and the Australian dollar to fresh four-month highs. Several European Central Bank Governing Council members made remarks this week that suggested the ECB was open to using further monetary policy measures such as quantitative easing in order to tackle deflation in the Eurozone. This dented the euro, while a series of disappointing data also weighed and kept the [..]

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