Forex Previews

Forex news – UK unemployment holds at 7.7% but for how long?

Posted on October 16, 2013 at 12:42 pm GMT

(Claimant Count change m/m, Source: ONS, Reuters) Today marked the release of the UK’s key employment figures from the Office of National Statistics. The unemployment rate has taken on added significance in recent months following the guidance by the Bank of England that it would not raise interest rates while the rate remains above 7%. The announcement of unemployment of 7.7% for the June – August quarter was in line with expectations and the same as the May – July [..]

Forex News – ZEW investor sentiment survey climbs to 3 ½ – year high

Posted on October 15, 2013 at 2:14 pm GMT

(ZEW Economic Sentiment, Source: Reuters) The release of today’s ZEW investor sentiment saw the index climb to 52.8, which represents a 3 ½ – year high. While the main focus of attention continues to be the United States and the negotiations to end the standoff between Republicans and Democrats, the signs of a slow economic recovery for Germany and the Eurozone as a whole continue. During its latest World Economic Outlook publication (October 2013), the IMF projected a GDP contraction [..]

Forex News – Bank of England keeps rates steady in line with guidance

Posted on October 10, 2013 at 1:01 pm GMT

The Bank of England kept its key benchmark rate at 0.5% during its meeting, as well as leaving the size of its asset purchase program unchanged at 375 billion pounds. The decision was in line with market expectations and caused little movement in the British Pound. The Bank of England also maintained its forward guidance – that was adopted in August of 2013 – by which the interest rate will remain at the current low level of 0.5% while the [..]

Forex News – Sterling falls after UK manufacturing numbers unexpectedly drop

Posted on October 9, 2013 at 12:47 pm GMT

Sterling weakened on Wednesday after disappointing UK manufacturing production data, which raised concerns about the health of the economic recovery in the nation. According to a report released by the Office for National Statistics, the August figure was less than forecast since production fell from July. Manufacturing Production dropped by a seasonally adjusted 1.2 percent in August, despite expectations for a 0.4 percent increase. In July production rose by 0.7 percent. Meanwhile, on an annualized basis, manufacturing production declined at [..]

Forex News – As US government shutdown enters 8th day what is drama and what is reality?

Posted on October 8, 2013 at 12:22 pm GMT

The failure of the United States Congress to pass a funding bill for the new fiscal year (year-end is 30 September) resulted in a partial shutdown of the US government meaning that various federal government functions were scaled down or closed and 800.000 non-essential, non-emergency government workers were sent home without pay. The shutdown is largely the result of the deepening polarization in Congress between Democrats and Republicans as well as the ascendancy of the Tea Party movement within the [..]

Forex News – Dollar falls after ISM Non-Manufacturing drops more-than-expected to 54.4

Posted on October 3, 2013 at 2:25 pm GMT

The dollar dropped against the yen and against the euro after US economic data showed the ISM non-manufacturing PMI index fell to 54.4 in September, from 58.6. The decline was more than the forecast of 57.4 and prior 58.6. Also, the employment component of ISM fell to 52.7 from 57, the lowest since May. The business activity index was an even larger downside surprise, falling to 55.1 from 62.2, versus the anticipated 60.0. USDJPY fell to 97.33 a few minutes [..]

Forex News – GBPUSD jumps after UK services PMI

Posted on October 3, 2013 at 8:57 am GMT

GBPUSD jumped 50 pips after data showed that the UK services sector grew in September. The Markit/CIPS Purchasing Managers’ Index (PMI) for services printed a reading of 60.3 in September which was in line with expectations. Although this was a slight decrease from August’s near-seven-year high of 60.5, any reading above the 50 level shows expansion. The UK service sector makes up more than three quarters of Britain’s output so the data is important. Meanwhile the outlook index is seen [..]

Forex News – ECB Mario Draghi news conference highlights

Posted on October 2, 2013 at 2:03 pm GMT

The following are highlights of Draghi news conference on Wednesday October 2nd. FORWARD GUIDANCE “In line with the forward guidance provided in July, the Governing Council confirms that it expects the key ECB interest rates to remain at present or lower levels for an extended period of time.” EXCHANGE RATES “The exchange rate is not a policy target for the ECB. The target for the ECB is medium-term price stability. “However, the exchange rate is important for growth and for [..]

Forex News – Euro above $1.36 after Draghi press conference

Posted on October 2, 2013 at 1:57 pm GMT

The euro rallied sharply against the dollar during ECB Chief Mario Draghi’s news conference on Wednesday, piercing $1.36 and approaching the heist level since February 4. Draghi seemingly made investors feel bullish on the euro when he said he is not worried about inflation. This is despite him repeating that interest rates will remain low for extended period, risks to growth are on the downside, the bank is ready to use all available instruments including another LTRO and risks to [..]

Forex News – Sterling steady despite weaker UK manufacturing growth in August

Posted on October 1, 2013 at 9:04 am GMT

The British pound dipped briefly in a knee jerk reaction after some weak UK manufacturing sector data showing the industry growth slowed slightly in September from a two-year high the month before, driven lower by a slowdown in export orders. A report released by the Markit/CIPS showed the UK Purchasing Managers’ Index (PMI) dropped to 56.7 from August’s 57.1, a slightly weaker reading than the expected rise to 57.3. The bright side is that the employment sub-index rose to 54.0 [..]

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