Forex Previews

Forex News – China recovery gains momentum

Posted on November 9, 2012 at 10:53 am GMT

China data gave some relief to markets today, as the world’s second largest economy is showing signs of an uptick in economic activity and recovery from the slowest pace of growth in the past three years. October figures on industrial output showed a rebound from September, rising 9.6 percent from a year ago versus 9.4 forecast, while retail sales were up 14.5 percent on the year beating forecast of 14.0 percent. The data give evidence that China’s recovery is now [..]

Forex News – Sterling surges vs. dollar after BOE stands pat on policy

Posted on November 8, 2012 at 12:34 pm GMT

The pound surged against the dollar after the Bank of England announced at its policy meeting today that it decided not to expand monetary easing and ot leave current policy unchanged. This gives a signal to markets that the economic outlook for the British economy is becoming more stable. However the economy is still fragile and there is inflation risk, so the BOE will probably wait to see if next month’s economic data improve. Thus we cannot completely rule out [..]

Forex News – Greek parliament approves austerity measures

Posted on November 8, 2012 at 7:34 am GMT

The Greek parliament approved austerity measures in a vote late on Wednesday, winning by a very thin margin despite an internal rift in the coalition government. Meanwhile outside the parliament building there were violent protests by tens of thousands of protestors. The new reforms on spending cuts, tax hikes and measures making it easier to hire and fire workers are required by Greece’s international lenders in order to continue being able to receive financial aid to avert going bankrupt. Greek [..]

Forex News – Obama faces fiscal cliff

Posted on November 7, 2012 at 5:39 pm GMT

Obama has won a second term in office but now has to face urgent economic challenges in the U.S. , particularly the so-called “fiscal cliff”. Basically the fiscal cliff concerns the end of last year’s temporary payroll tax cuts (resulting in a 2% tax increase for workers), the end of certain tax breaks for businesses, all-in-all a $600bn mix of automatic tax hikes and spending cuts. The terms of the Budget Control Act of 2011 are scheduled to go into [..]

Forex News – Markets rally after Obama wins second term

Posted on November 7, 2012 at 8:50 am GMT

President Obama’s re-election for a second term in office resulted in boosting risk appetite in the markets, lifting risk currencies and commodities higher while causing the U.S. dollar to fall. An Obama victory leads to a continuation of the status quo, meaning loose monetary policy. The head of the Federal Reserve Ben Bernanke will likely remain in office. He is perceived as dovish and will likely continue stimulus measures of quantitative easing, which causes dollar to weaken. However, dollar strength [..]

Forex News – Reserve Bank of Australia holds rate at 3.25%

Posted on November 6, 2012 at 7:14 am GMT

The Australian dollar jumped 0.6 percent against the US dollar after the Reserve Bank of Australia announced it decided to leave the key interest rate on hold at 3.25 percent. There were expectations that the central bank was going to cut the overnight cash rate by 25 basis points and the surprise of keeping it unchanged spurred the aussie to the highest level since September 28, hitting $1.0436. The recent stronger than expected economic data prompted the RBA to hold [..]

Forex News – Sterling falls after weak UK Services PMI

Posted on November 5, 2012 at 10:45 am GMT

Sterling fell after disappointing UK data on the country’s dominant service sector which showed the slowest pace of growth in almost two years last month. The Service Sector Purchasing Managers’ Index (PMI) compiled by Markit/CIPS reported a reading of 50.6 last month from 52.2 in September, the lowest reading since December 2010. Expectations were for a smaller dip to 52.0. However, the number holds above the 50 mark which what separates contraction from expansion. “The broadly stagnant trend seen in [..]

Forex News – Australian retail sales tick up, AUD gains

Posted on November 5, 2012 at 7:14 am GMT

The Australian dollar rose early Monday following better than expected retail sales numbers. Aussie gained back losses made against the US dollar on Friday, moving up to $1.0368 from a low of $1.0329 in early Asian session trading on Monday. Australian retail sales in September showed a rise of 0.5 percent , beating economists’ predictions of a 0.4 percent increase. However the firm data may not be enough to sway the Reserve Bank of Australia from cutting interest rates. Today’s [..]

Forex News – Upbeat NFP report before US presidential election

Posted on November 2, 2012 at 1:43 pm GMT

On Friday the US Department of Labor released the closely watched nonfarm payrolls report which beat expectations. This report offers the last broad snapshot of the US economy before the November 6 presidential election. Data showed an increase of 171,000 new jobs added in October compared to the forecast of 125,000. Meanwhile, September jobs figures were revised up 84,000 to 148,000 in total. Overall unemployment seems to be on a declining trend in America, as hiring has picked up over [..]

Forex News – Sterling rises after UK construction data

Posted on November 2, 2012 at 10:51 am GMT

Sterling rose against the dollar and euro after data showed that construction activity picked up in October in the United Kingdom. According to data compiled by Markit/CIPS , the UK Construction PMI ( Purchasing Managers’ Index) ticked up to 50.9 from 49.5 in September, better than the expected 49.1. Any number above 50 indicates expansion. However, Markit said that within the sector, only civil engineering output rose, with residential and commercial work declining. New orders fell for the fifth straight [..]

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