Forex Previews

Forex News – German business sentiment improves in November

Posted on November 22, 2013 at 11:58 am GMT

Europe’s largest economy is showing signs of steady recovery according to the Ifo Index of German business sentiment realeased today which hit a new 18-month high in November. The latest reading of the Ifo business climate index jumped to 109.3 compared to October’s 107.4 reading and beat expectations for a rise to 107.7. The stronger numbers suggest fourth quarter GDP in Germany could expand further. Ifo president Hans-Werner Sinn said the German economy was looking ahead to the winter months [..]

Forex News – Eurozone PMIs raise deflation fears in region

Posted on November 21, 2013 at 2:19 pm GMT

The Purchasing Managers’ Indices (PMI) for the manufacturing and services sectors in the Eurozone were released today, suggesting business activity in the region is still slow overall. Markit’s November flash composite PMI dropped for a second straight month to 51.5 in November, down from 51.9 in October. While this is still in expansionary territory, forecasts were for a rise to 52.0. As the index moves in the opposite direction, concerns are growing that the economic recovery in the Eurozone is [..]

Forex News – What to expect in the week ahead: focus on Fed, BOJ, BoE

Posted on November 18, 2013 at 12:06 pm GMT

It will be a relatively quiet week in terms of economic releases, with the focus mostly turning to what various central bankers have to say and minutes from monetary policy meetings. At the start of the week on Monday, the National Association of Home Builders index for November will be released in the United States and it will be watched for signs of stabilization in the construction sector. Following a peak of the index in August, it subsequently declined somewhat [..]

Forex News – Eurozone GDP barely grows in 3rd quarter

Posted on November 14, 2013 at 2:42 pm GMT

[caption id="attachment_11285" align="alignnone" width="550"] (click to enlarge)[/caption] The announcement of growth of 0.1% for the Eurozone during Q3 marked the 2nd consecutive quarter of growth following 6 straight quarters during which the single currency area’s economy was contracting (Q4 2011 – Q1 2013). During the previous quarter, the Eurozone grew by 0.3% The quarterly growth rate was less than economists’ expectations of 0.2%. The main reason for this was the underperformance of France, which saw its economy shrink by 0.1% [..]

Forex News – BOE raises UK growth forecasts

Posted on November 13, 2013 at 2:41 pm GMT

The Bank of England published its latest quarterly inflation report today, giving a very hawkish view on the UK’s economic growth outlook this time compared to its previous inflation report in August. The BoE raised its growth forecasts, seeing gross domestic product (GDP) expanding in 2013 by 1.6%, which is higher than its previous forecast of 1.4% made in August. Additionally, it expects the economy to expand by 2.8% in 2014. The BoE was also very optimistic about the UK [..]

Forex News – Weaker-than-expected UK inflation hits sterling

Posted on November 12, 2013 at 2:38 pm GMT

[caption id="attachment_11208" align="alignnone" width="550"] (click to enlarge)[/caption] The pound made a 2-month low against the dollar today on the release of lower-than-expected inflation data for October. Specifically, the Consumer Price Index for October posted a monthly increase of only 0.1% compared to expectations of a rise of 0.4%. The annual rate of increase was 2.2% against an expected increase of 2.5%. September’s inflation rate was 2.7%. The rate of inflation was severely moderated by a big drop in transport costs, [..]

Forex News – Relative peace for traders after turbulent previous weeks

Posted on November 11, 2013 at 11:19 am GMT

Due to a lack of big economic releases from the United States, during the week ahead the market will probably try to digest recent events and try to establish new equilibriums that reflect the latest fundamentals. Monday will mark the Veterans’ day holiday in the United States and will feature only Italian industrial output data out of Europe as well as Australian mortgage lending for September and the September Japanese current account balance. Tuesday will start with business confidence indicators [..]

Forex News – US GDP shows American economy growing at steady pace

Posted on November 7, 2013 at 3:23 pm GMT

[caption id="attachment_11130" align="alignnone" width="550"] (US GDP growth, quarter-on-quarter, annual rate %)[/caption] The announcement of advance third quarter GDP growth estimate at 2.8% initially looked very impressive as the figure smashed expectations of growth of 2.0%. However, on closer inspection, GDP was boosted by temporary inventory accumulation, which is likely to be reversed in the future as firms will try to de-stock. Excluding inventories, GDP grew at 2.0%; closer to expectations. During the second quarter, growth ex-inventories was 2.1%, which does [..]

Forex News – Germany’s industrial sector shows strong activity in September

Posted on November 6, 2013 at 2:49 pm GMT

The industrial sector in Europe’s largest economy showed increased signs of strength today after Germany’s industrial orders beat forecasts in September. Orders surged higher-than-expected by 3.3 percent month-over-month, from 0.65 percent in August. A Reuters poll forecast a rise of 0.5 percent. The data are an important leading indicator of production since rising purchase orders signal that manufacturers will increase production. The data will give a boost to Germany’s economic outlook, especially since the German economy weakened in 2012 and [..]

Forex News – Sterling rallies after PMI Services for October highest in 16 years

Posted on November 5, 2013 at 2:18 pm GMT

Sterling rose strongly today after the release of October Services PMI for October. The survey’s headline index surpassed expectations by coming in at 62.5, compared to expectations of a slowdown to 59.8. The September figure was 60.3. There were also good news in the sub-components of the survey, as both the employment component and the new orders component climbed to levels not seen for over a decade. The bad news was that firms were facing some capacity constraints, while their [..]

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