Forex Previews

Forex News – China’s slowing growth fears takes toll on copper prices and AUD

Posted on March 12, 2014 at 11:54 am GMT

Concerns are growing about China’s growth this year after the nation’s trade balance data for February were released earlier this week, being the latest in a series of poor data releases recently. Manufacturing PMIs have been no better for months. The slowing pace of growth in the world’s second largest economy has taken a toll on copper prices, the reason being that China is a major consumer of copper. Also, the commodity is being used as collateral to raise financing [..]

Forex News – BoJ optimistic about export growth

Posted on March 11, 2014 at 12:21 pm GMT

The Bank of Japan concluded its two-day monthly policy meeting on Tuesday with an announcement that it retained its policy easing program, meaning it will continue to expand its monetary base by 60tln – 70tln yen annually. Based on a press conference by BoJ Governor Haruhiko Kuroda, the central bank remains optimistic on the Japanese economic outlook and he did not signal any chances of easing in April. This is surprising considering Japan recently posted a record current account deficit [..]

Forex News – Asian focused news to dominate as Europe / US have light calendars

Posted on March 10, 2014 at 10:26 am GMT

Japanese statistics and a BoJ meeting combined with industrial output figures for Europe, retail sales for the US and some important developments in Australia and New Zealand are likely to be the highlights of this week. This will be an important week for the Japanese yen, as following the significant downward revision of 4th quarter GDP growth and a current account deficit that was bigger-than-expected as a result of weak exports, the Bank of Japan will deliver its policy statement [..]

Forex News – Australian 4th Quarter GDP surprises on upside; strong economy could help aussie

Posted on March 5, 2014 at 1:23 pm GMT

The news that Australia’s economic growth beat expectations during the final quarter of the year was a reassuring development for the country’s outlook. Quarter-on-quarter growth came in at 0.8%, slightly higher than economists’ expectations of 0.7%. The beat on the year-on-year growth number was even more significant at 2.8% versus 2.5% expected. In order to explain the country’s economic performance further, three important factors need to be outlined. Firstly, household spending was up 0.8% quarter-on-quarter, which added 0.4% to overall [..]

Forex news – Geopolitics becomes main forex driver on Ukraine / Crimea crisis

Posted on March 4, 2014 at 10:26 am GMT

The reports over the weekend of Russian troop movements in and around Crimea and near the Ukraine / Russia border had a major effect on international markets. The troop movements followed the ousting of the previous pro-Russian government of President Yanukovich and its replacement with a government that wanted closer relations with the European Union. The fact that Ukraine is split between Russia-friendly regions and pro-West areas, added to the risks of internal strife as well as the risk of [..]

Forex News – Week ahead: Geopolitics, ECB meeting and US employment report loom large

Posted on February 28, 2014 at 2:40 pm GMT

It will be a busy week in terms of economic data, central bank meetings and geopolitics. First of all, if the situation in the Ukraine deteriorates and in particular if Russian armed forces become involved (an unlikely scenario at present), safe haven assets and currencies could gain. On the other hand, if that particular situation begins to stabilize and if there are signs that Russia and the West can cooperate and reach a mutually beneficial agreement, which will also stabilize [..]

Forex News – Australian capital spending disappoints as business investment slows down

Posted on February 27, 2014 at 12:07 pm GMT

Australian capital expenditure dropped by a 5.2% quarterly rate during the fourth quarter, which was a negative surprise compared to expectations of a flat reading. In addition, the previous quarter’s reading was revised downwardly to a rise of 2.6% from 3.6% announced previously. Furthermore, construction capex was down 3.5% compared to a revised 5.4% growth during the previous quarter and plant and machinery capex spending fell even more by 8.6%. It should be noted that during 2011 and for most [..]

Forex News – Analysts ponder over meaning of recent yuan drop

Posted on February 26, 2014 at 2:54 pm GMT

On Tuesday, 25th February, the Chinese Yuan dropped at a rate which drove it outside the plus or minus 1% level from a midpoint set by the People’s Bank of China. This was a relatively rare occurrence. The dollar rose by 1.3% compared to its mid-January low of 6.04 to reach 6.126 by the end of trading on Tuesday. Tuesday’s move of almost 0.5% was significant given the glacial pace with which the tightly controlled yuan moves. For example, during [..]

Forex News – S&P 500 makes new intraday all-time high – what does it signal?

Posted on February 25, 2014 at 3:27 pm GMT

Following a challenging January, the US stock index benchmark, the S&P 500 was down 5.7% year-to-date at the beginning of February – its first 5% correction since June of 2013. Since the February 3 low, it has rallied sharply, to make a fresh intraday high of 1858. The index was up 30% during 2013; its best year since 1997. There was plenty of optimism coming into 2014, as according to the consensus view, a strengthening US economy was likely to [..]

Forex News – German IFO business sentiment survey points to economic improvement

Posted on February 24, 2014 at 1:53 pm GMT

News that the German IFO business climate index in February reached its highest level since July of 2011 was further evidence that the German economy was on a steady path of recovery during the course of 2014. The business climate index came in at 111.3, versus 110.6 the previous month and also 110.6 that economists were expecting. The other components of the survey also gave an upbeat picture. The current conditions index jumped to 114.4 versus 112.4 the previous month. [..]

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