Forex Previews

UK GDP likely sank again in November but Bailey and vaccines give pound a lift – Forex News Preview

Posted on January 13, 2021 at 3:03 pm GMT

UK economic output likely plummeted in November – figures out on Friday are expected to reveal (07:00 GMT) – after the country was plunged in a second lockdown. But things have only gotten worse since then as England has been forced into its third lockdown. However, the grim data will probably be seen as too out-of-date to have a material impact on the pound as traders look beyond the winter shutdowns and towards mass inoculations. With the UK leading the [..]

US inflation eyed ahead of Biden’s stimulus proposal – Forex News Preview

Posted on January 12, 2021 at 11:48 am GMT

The main event for the dollar and equity markets this week will be the details of incoming President Biden’s stimulus proposal, which will be unveiled Thursday. Before that, the latest CPI data on Wednesday will tell us how inflationary pressures are evolving. This could prove crucial amid speculation around whether the Fed might begin tapering early next year. Overall, markets seem to be transitioning from a ‘reflation’ to a ‘growth’ narrative, and if this shift persists, the latest rebound in [..]

Fed minutes and NFP report to greet 2021, unlikely to change dollar outlook – Forex News Preview

Posted on January 5, 2021 at 3:08 pm GMT

The US dollar has started 2021 on the backfoot, but with several risk events lined up this week, can the battered currency regain some posture? The minutes of the Federal Reserve’s December meeting are expected to shed more light on the revamped forward guidance on Wednesday (19:00 GMT), while the latest jobs report on Friday (13:30 GMT) may reveal that employment growth stumbled in December. However, that’s not all investors will need to keep an eye on as several Fed [..]

After US stimulus deal, barrage of US data next on dollar’s radar – Forex NewsPreview

Posted on December 22, 2020 at 1:28 pm GMT

Traders will be bombarded with an avalanche of US economic data on Wednesday after US congressional leaders reached a stimulus agreement on Sunday. Hitting the market at 1330 GMT are durable goods, alongside the personal income and consumption numbers and the all-important core PCE price index. The impact of those data is expected to be overshadowed by political news and Covid-19 headlines. With the dollar enjoying more selling interest, weak data could take the heat off from any stimulus-led rally and offer the dollar some reprieve. US stimulus deal Congressional [..]

Week Ahead – Stimulus is coming to town

Posted on December 18, 2020 at 2:06 pm GMT

It is a very quiet week in terms of events, as trading winds down for the holiday season. This implies that liquidity may be in short supply, setting the stage for some explosive moves if there is any breakthrough in the Brexit crusade or the US stimulus saga. Overall, markets are set to end a crazy year on an incredibly optimistic note, with a little help from central banks showering investors with cheap money. The ‘party’ could continue into next [..]

Bank of Japan to continue current path – Forex News Preview

Posted on December 17, 2020 at 4:30 pm GMT

The Bank of Japan will announce its last policy decision for 2020 early on Friday at 03:00 GMT, and the consensus is for the central bank to hold policy unchanged but extend existing funding schemes for pandemic-hit companies. No need for drastic measures Japan’s Cabinet, for its part, submitted a third extra spending bill of $200 billion this week for parliamentary approval, topping the new stimulus package to above $700 billion as a third, more deadly wave of infections pushed [..]

New Zealand to post Q3 GDP as recovery gathers steam, kiwi soars – Forex News Preview

Posted on December 16, 2020 at 3:29 pm GMT

Third quarter GDP figures are scheduled for release in New Zealand on Thursday (Wednesday, 21:45 GMT), following hot on the heels of the government’s upwardly revised economic projections earlier today. The Pacific nation’s economy is forecast to have bounced back strongly in Q3 despite its biggest city – Auckland – spending much of August and September under lockdown. Although the now ‘outdated’ data won’t change anything as far as the outlook is concerned, it could reinforce the kiwi’s uptrend if [..]

SNB meeting: Same old blues – Forex News Preview

Posted on December 16, 2020 at 3:13 pm GMT

The Swiss National Bank (SNB) will conclude its quarterly meeting at 07:30 GMT Thursday. No change in policy is expected even though Switzerland remains trapped in deflation, as the SNB is practically out of firepower. Instead, the central bank is likely to repeat that its primary weapon will remain FX intervention. The market reaction is likely to be muted, with the franc’s overall trajectory likely to depend mostly on external elements, like the outcome of Brexit talks and how quickly [..]

Eurozone flash PMIs may keep outlook blurry, but the euro may not care – Forex News Preview

Posted on December 15, 2020 at 4:07 pm GMT

Eurozone preliminary PMI readings for December will be the only highlight in the bloc’s calendar this week on Wednesday at 09:00 GMT, with forecasts pointing to a moderate improvement in business activities. While markets are thirsty for some good news, the euro may keep ignoring data releases and tighter Covid restrictions as a negative GDP print in the fourth quarter is inevitable. The last troubling chapter of Covid-19 story Although virus infections have slowed pace in many euro area countries [..]

Bank of England: Dovish message, but no action – Forex News Preview

Posted on December 15, 2020 at 3:45 pm GMT

It is a huge week for sterling. Besides the BoE decision at 12:00 GMT Thursday, there is also a ton of data to keep markets entertained while Brexit negotiators make a final attempt to reach a trade deal. The Bank is unlikely to act, though it may signal that more easing is on the cards next year if the negotiations fail. A dovish message could briefly hurt sterling, but the currency’s ultimate destination depends on the trade talks, where a [..]

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