Forex Previews

Forex News – Australia’s export surplus and retail sales growth reduce rate cut expectations

Posted on February 6, 2014 at 11:46 am GMT

Australia produced some upbeat economic releases on Thursday, giving some welcome relief to the nation’s currency as the data bolsters the view that the Reserve Bank of Australia would keep rates steady for now and will not lower them further. According to Australia’s statistics bureau, the economy reported its biggest trade surplus in 2 years in December as a result of exports exceeding imports by $468 million. Exports rose 4% in December, while imports rose 2%. The data surprised analysts [..]

Forex News – Eurozone retail sales drop in December

Posted on February 5, 2014 at 1:57 pm GMT

The volume of retail sales in the Eurozone fell by more-than-forecast in December, as the Christmas shopping season failed to tempt shoppers to spend more. The drop in sales marked the biggest fall since May 2011. According to the EU’s statistics office Eurostat, the volume of retail trade in the 17-member euro area fell 1.6 % in the month of December after a revised 0.9% rise in November. Most analysts expected only a 0.7% decline. Compared with the same period [..]

Forex News – US January ISM Manufacturing PMI slides causing dollar to drop

Posted on February 4, 2014 at 1:18 pm GMT

[caption id="attachment_13080" align="alignnone" width="550"] (click to enlarge)[/caption] The release of the January ISM Manufacturing survey delivered a negative surprise both for risk assets and for the US dollar. Instead of backing off only slightly from December’s 56.5 figure, the index fell all the way to 51.3. Economists were expecting a drop to 56.0. The reading was the lowest since May of 2013, when the index fell to 50. The components of the survey also painted a negative picture. For example [..]

Forex News – Busy week with ECB, Bank of England and US employment report

Posted on February 3, 2014 at 2:27 pm GMT

The week ahead is expected to be very busy, as many events will take place that are expected to have a significant impact on the foreign exchange market. By the end of the week, more will be known on the outlook for monetary policy in the Eurozone and the UK, on the outlook for manufacturing and services in the US and also on the employment situation in the world’s biggest economy. Following the previous week’s weaker-than-expected Eurozone flash inflation figures [..]

Forex News – Eurozone inflation below 1% for 4th consecutive month

Posted on January 31, 2014 at 1:24 pm GMT

An unexpected drop in Eurozone CPI for January 31, 2014 raised fears of deflationary pressures in the region. According to data released on Friday from the EU’s statistics office, Eurostat, consumer prices fell to 0.7% year-on-year in January compared to 0.8 % in December. This was the lowest level since October, which was when inflation reached a near 4-year low. January’s drop in the rate of inflation surprised analysts who had forecast a slight acceleration to 0.9%. It is the [..]

Forex News – Emerging Markets face market turbulence as Fed tapering progresses

Posted on January 29, 2014 at 1:50 pm GMT

One side-effect of the Federal Reserve’s super-easy monetary policies of the past 4 years or so, is that global markets have been flooded with extra liquidity. Many of the US dollars that the Fed has created found their way out of the United States and into a very diverse array of international assets. As investors looked for higher-yielding opportunities to replace their reduced income from U.S. fixed income investments, emerging market bonds were one obvious choice. This was initially a [..]

Forex News –UK economy growing nicely Q4 statistics show

Posted on January 28, 2014 at 2:45 pm GMT

[caption id="attachment_12900" align="alignnone" width="550"] (click to enlarge)[/caption] The announcement of 4th quarter GDP growth for the United Kingdom was encouraging as it showed the economy growing by 0.7% quarter-on-quarter and 2.8% year-on-year. The quarterly growth rate of 0.7% was a touch lower than 0.8% of the previous quarter but right in line with economists’ expectations. The UK economy posted overall growth for 2013 of 1.9%, which, as the chart above shows, was the highest since 2007. 2014 is expected to [..]

Forex News – Fed decision looms large in action-packed week

Posted on January 27, 2014 at 11:19 am GMT

Following a week that emerging markets started to face serious market pressure, a number of events is likely to have a major influence on foreign exchange trading this week. First of all, the Federal Reserve will announce on Wednesday the result of its two days of deliberations. This will be interesting for a number of reasons. For people that are sensitive to leadership changes in monetary policy, this will be the last meeting during which Ben Bernanke will be the [..]

Forex News – Housing expected to be positive factor for US economy in 2014

Posted on January 24, 2014 at 2:15 pm GMT

[caption id="attachment_12845" align="alignnone" width="550"] (click to enlarge)[/caption] Housing statistics are followed very closely by US economy-watchers. The state of the housing market is intertwined with the state of the US consumer, both with the wealth effect rising home prices generate and as employment and income prospects justify taking out a mortgage and buying a house. In addition, the housing market is very important as it encourages construction, which in turn can have a significant influence on GDP. Residential construction has [..]

Forex News – Big drop in UK unemployment rate sparks rally in sterling

Posted on January 22, 2014 at 1:37 pm GMT

[caption id="attachment_12808" align="alignnone" width="550"] (click to enlarge)[/caption] Having received a significant boost from the December retail sales report last Friday, the pound benefitted from a big drop in UK unemployment today. Specifically, the ILO definition of the unemployment rate fell to 7.1% in the three months to November from 7.4% the previous period. It was the lowest unemployment rate since the first quarter of 2009. The unemployment rate was also well below economists’ forecasts of 7.3%. The new data showed [..]

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